When your lender permanently changes the basic terms and conditions of your home mortgage its known as loan modification. Modifications can include reductions in the monthly payment, in the rate of interest, the principal balance due and a waiver of penalties and late charges. A home mortgage loan modification is the most effective way to work with a mortgage that is in distress or that may have problems in the future.
Commonly and Frequently Asked Questions:
- Am I eligible for loan modification? How do I find out if I’m eligible?
- Is there any need for the lender to do a physical inspection of my residence?
- What about penalties and late fees?
- Can a loan modification prevent foreclosure?
- Can the payments that I have missed be added back to my new loan?
- Do I have sufficient time to prevent a foreclosure on my home?
- What can I expect from loan modification?
- What is the process of qualifying for the home loan modification program?
1) Am I eligible for loan modification? How do I find out if I am eligible?
You qualify for a home loan modification if you can demonstrate and prove that you are able to pay the monthly payment of the newly modified loan both now and in the future. You will need to submit proof of income by providing bank statements and the salary stubs or slips. You also need to furnish complete personal financial statements. This information is used to determine if you qualify for a modification.
2) Is there any need for the lender to do a physical inspection of my residence?
In most of the cases there is no need for the bank to do any physical inspection of the residence. However this does vary depending on the situation so it’s a good idea to be prepared for an inspection.
3) What about penalties and late fees?
In most cases the penalties and late fees are waived and do not have to paid. Our professionals will work diligently to insure all charges that qualify are removed. Any that remain are included in the new loan.
4) Can a loan modification prevent foreclosure?
Yes, loan modification can prevent foreclosure. One of the major objectives of loan modification program is to stop potential foreclosure on a property.
5) Can the payments that I have missed be added back to my new loan?
To the best of our experience, the payments that you have missed can be added to the new loan in such a way that it is spread over a period of time to make the monthly payment affordable.
6) Do I have sufficient time to prevent a foreclosure on my home?
One can be optimistic till the time of foreclosure sales actually takes place. If a date is set then the debtor should act quickly without wasting any time. If you try to stop foreclosure just a few days before it’s to happen, this can prove to be a very risky strategy if your lenders don’t reach an agreement quickly.
7) What can I expect from loan modification?
The possible outcome of the loan modification process can be
- Reduced monthly payments
- Fixed term of 30, even 40 yrs
- Past payments that are completely or partially deferred
- Preservation of home ownership
- Preservation of the credit ranking
- Reduction in the principal balance
- Reduction in the rate of interest
8) What is the process of qualifying for the home loan modification program?
You just need to contact us through the following click to know whether you qualify for the loan modification program or not.