FAQ's Frequently Asked Questions...
Some FAQ's about Loan Modification and Principle Reduction:
What guarantee do I have that the loan will be modified?
We look over a file thoroughly before accepting it. We match your loan modification to files we have successfully completed. If a file is accepted it's because you have good reason for modification of your interest rate, loan balance or both. We do not make the final decision, the Attorney you retain will do that. We are here to organize your paperwork and had it to the Attorney you retain for your modification.
How long will it take to modify my loan?
Loan modifications can take 30 - 90 days When modifications first started, there was so much confusion that everything moved through much quicker. Now, the banks are digging their feet into the ground and trying to play by their own rules, we can't even begin to tell you how long a modification will take. Depending mostly on how much of a backlog your lender has. our part of the process is very efficient. The process can be expedited on our clients end by ensuring we receive all the required documents from you in a timely manner.
How soon will I be contacted by my Loan Modification Processor following Sign-up?
Our first call to you will be within 24hrs, but we require 72 hours to fully process your application (and that is assuming that you have completed it correctly and included all items requested by the Attorney). You can check on the status of your loan quick and easy. We are finding that it is not as easy to get status from the Attorney's offices. They are busy and overwhelmed with several modifications. We are lucky to get any information once a week or every two weeks. Here is why.......Once your package is sent in to the attorney and they forward all information and notification to your lender, you are assigned a negotiator. Your file can sit in a pile for 8 to 10 weeks! Then, if you are not late, they will set it aside for even longer.
Are lenders and banks willing to go through the process?
In this market, banks do not want to foreclose if they don't have too. The majority of lenders are open to modifications. With pressure from the market and government, banks are dramatically changing the way they see foreclosure. There has never been a better time to work-out a more affordable mortgage solution. You do have to consider that they have received TARP funds and at this time do not feel the pressure they were feeling when all of this first started.
I've already tried to deal with my lender, but they won't seem to budge. Can this Loan Modification Company really help me?
Absolutely! We've heard this from many of our customers. Over the years we have developed strong relationships with the banks. Our professionalism and efficient process drive savings for everyone involved and the banks appreciate our service. Regardless of how inflexible your lender may seem, our modification process and attorneys changes the dynamic of the relationship and puts you back in control.
How much does it cost?
Cost depends on the number and size of the loans you need to modify. Also - are you trying to reduce only the interest rate for a lower payment? Or, are you upside down on your equity and need the actual loan amount reduced? Currently the basic charge is $2,500 and if their is a second loan on the property you will be charged an additional $500. So for simply the price of one months payment, you can have your loan reviewed for modification or principle reduction!
Will a loan modification affect my credit?
Usually a loan modification does not affect credit. The terms we finalize with the bank enable you continue working with the existing lender, thereby ensuring your credit report isn't tarnished with a foreclosure.
What are some of the prevailing interest rates following modification?
We have seen rates as low as 1%, with a principle reduction of $175K But honeslty, it changes every day and we never know what moretoriums, laws or changes will come on a daily basis. Many of the lawsuits are forcing changes that protect you, the client, more than ever before. But for every step forward we take to head off the big banks taking over, we get pushed back a few steps.
What is Foreclosure?
Foreclosure numbers are growing daily. Of the one hundred twenty or so million homes in America, more than 4% or roughly 4.8 million of them are facing foreclosure. Some of these homeowners are able to work their way out of foreclosure, however, according to MBA there were about 500,000 homes that went through Foreclosure last year. Foreclosure threatens these homeowners because they are late or seriously behind in their mortgage payments.
