The banks have also realized that they would rather not have to foreclose on a property. They have learned that each delinquency and foreclosure is costly to administer, with a typical foreclosure estimated at $60,000, or about 20-25 percent of the loan balance (legal fees alone can cost $4,000), and those costs are expected to be even higher in times of home price depreciation. Banks already have an overwhelming number of properties in foreclosure, and they are finally recognizing their need to accept loan modifications via their loss mitigation departments.
Most Banks will generally modify an existing loan if they suspect the borrower is willing to make the new payments at a lower payment and interest rate. Loan Modifications are essentially used as a tool to stop an impending foreclosure. If you have an adjustable rate mortgage that is ready to reset and you can’t meet the higher regular payments, you may wish to request a loan modification from the bank. They will request a total financial history from you, detailing your revenue and monthly costs.
Ideally, you need to have some cushion in your earnings to explain a mortgage loan modification, if they switched your home loan to a fixed rate mortgage.
GFC is a national online mortgage modification company that is dedicated to offering all types of mortgage solutions to its valued customers, at the lowest possible rates and with the most favorable terms. We have a 99% satisfaction rate, because we go to extra mile to ensure you get the modification you want. We help those with bad credit situations get back on their feet, by providing timely, professional advice and financial coaching.
We also value our visitor’s privacy here at USA Loan Modification Expert. We will never disclose any of your personal information to third parties without your express permission. We protect you, because you are our investment. Confidentiality is guaranteed.
We provide solutions that can help you lower and manage your mortgage bills.
What exactly is a loan modification?
A loan modification is a permanent change in one or more terms of a home loan. The loan modification process allows the loan to be reinstated, and can include an interest rate reduction, a longer loan term, principal reduction, forgiveness of delinquent payments or a combination of all four. Bottom line, a successful loan modification should lower your monthly payment and ease your financial problems.
Will I have to pay all of the late fees and penalties?
No! Not in the majority of cases. We are seeing that most lenders will either waive the late fees or allow you to include any outstanding amounts into the new loan.
Will my bank need to do a physical inspection of my home?
No! Not in the majority of cases. In fact, we have yet to run across a situation where the lender has needed to do another inspection.
How can I find out if I qualify for a loan modification?
We are seeing that the #1 criterion lenders look for to approve loan modifications is proof of your ability to afford the new loan payment now and in the future. You provide us, properly completed financial statements and proof of your income, such as pay check stubs, bank statements, etc, and then we advocate to the lender on your behalf.
Can I still ask for a loan modification even if I am not currently delinquent?
Yes. We are now witnessing that most lenders will accept loan modification applications from homeowners who foresee a problem meeting their home loan payments due to interest rate resets or financial hardship. The Federal government is urging lenders to proactively reach out to homeowners who face potential default. GFC’s loan modification process allows you the homeowner to apply for a loan modification without being currently delinquent.
What is an acceptable hardship situation?
While each homeowner’s situation is unique, we are seeing that lenders generally consider the following divorce/separation, death of a spouse or borrower, illness/medical bills, military service, loss of job/income, increase in property tax, unavoidable home repairs, home value depreciation, and short-term/permanent disability as acceptable reasons to consider a loan modification. A hardship letter which will be included in your loan modification application package will help the lender understand your current circumstances and intentions.
Does a loan modification stop foreclosure?
Yes, that is one of the purposes of a loan modification. When GFC completes a loan workout solution with your bank, your loan is immediately brought current.
What about my missed payments-can they be added back into my loan?
Yes, in our experience missed payments can be added to the new loan balance and then spread out over the term so you can then afford the new loan payment. We have seen that some lenders may require a “good faith” payment to start the loan modification process.
How do Banks and other Lenders perceive Loan Modification? Would they rather foreclose?
At GFC, we have seen that Banks DO NOT prefer foreclosure to a reasonable, workable loan modification. Contrary to public opinion, banks are not looking to scoop up all the homes they can find. They have more real estate in their portfolios than they can handle. The average foreclosure costs the mortgage lender $50,000 and in today’s economic market the number of foreclosures is growing at an alarming rate. It is almost always in the lender’s best interest to participate in a loan modification program.
How long does it take to complete our loan modification? Case once we have submitted all of our paperwork?
Once you have submitted all of your paperwork, it will take anywhere from 2 weeks to several months. This depends on the stage of foreclosure you are in and your financial position. Typically it takes several weeks to complete a work out agreement and stop foreclosure proceedings.
Do I have enough time to stop my foreclosure?
You still have hope until the foreclosure sale occurs. If a sale date for your house has been set you need to act fast. Sales set for the next day may be stopped, but this is very risky and some lenders will not agree to it. Your best option is to take action immediately and contact GFC before it is too late.
I’m currently in bankruptcy. Can you still help?
Yes. But we cannot negotiate a work out agreement with your lender until your mortgage has been discharged or dismissed from the bankruptcy proceedings. GFC’s professional loss mitigation consultants can still evaluate your case and explain the best options to save your home. Then when the mortgage is out of the bankruptcy we can proceed with the home foreclosure help. Sometimes after bankruptcy it is easier to make a mortgage payment because other debts have been discharged.
I’ve already talked with my lender and they just want all their money. Can you still help me?
Yes. Most clients have experienced this kind of inflexibility from their lenders before calling us. GFC works to get your bank to listen to your needs.
What if I can no longer afford my home? Can you still help me?
Yes. If you are certain that you cannot afford your home any longer and wish to sell, we can help you to secure a short sale payoff. Often times these agreements can be arranged at low or no cost to you.
What can I expect from a loan modification?
Loan modifications may result to the following:
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