Loan Modification & Debt Relief
I have had some success in helping homeowners getting their loans modified. If you are interested in this option, please contact me right away. Remember: Even hard-working people can encounter unforeseen situations which may affect their ability to pay their mortgage in a timely manner. Many issues can be contributing factors, such as temporary job loss, medical illness or injury, marital difficulties, unforeseen repairs or high utility rates, tenant problems, or even a death in the family. Just one of these situations can have a direct bearing on one´s ability to make their mortgage payments.
· The Mission:
We are dedicated to assisting distressed homeowners by identifying and implementing the best available loss mitigation option to prevent foreclosure. Following a thorough analysis of each situation, we work with homeowners and their lenders to come up with the appropriate loss mitigation solution, whether it is reinstating the mortgage, a forbearance agreement, a loan modification, a repayment plan, a deed in lieu of foreclosure, or a short sale agreement. We work diligently on behalf of the homeowner to negotiate and secure a fair agreement with their lender.
· Loan Modification FAQ’s:
Following are some definitions and information about the world of loss mitigation and loan modification
that readers may find useful. My team and I believe in clarity and uncovering and exploring the
mortgage modification process.
· Loss Mitigation Definitions:
Loan modification: A new mortgage rate, time frame, or other terms and conditions are arranged for an
Lien modification: The mortgage lender modifies the existing loan, making it possible for the borrower
to qualify for refinance with a different lender.
Short sale: The mortgage lender allows the house to be sold at a price lower than the mortgage owed
and forgives the borrower the balance of the debt. This is used as a last option to avoid foreclosure
when other avenues are not feasible.
Deed in Lieu of Foreclosure: When a house in saleable condition has been on the market for at least
30 days without selling, the bank may accept the deed to the house in lieu of foreclosure and forgive
the balance of the debt.
·Frequently Asked Questions:
What changes occur within the mortgage, with a loan modification solution?
A variety of things can occur with mortgage modification. A variable rate may become fixed.
An interest rate may be lowered, the time period for payment may be extended, or a combination
of these arrangements.
How do Banks / Lenders perceive Loan Modification? Would they rather Foreclose?
Banks DO NOT prefer foreclosure to a reasonable, workable loan modification. Contrary to public image, 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.
I´m a home owner. How do I get involved with mitigation services?
That´s the easy part. Contact me and we will fill out the proper forms for a prompt review of your case.
·Benefits of Loan Modification:
We believe that loss mitigation and loan modification solutions are, in almost all cases, preferable to foreclosure and bankruptcy, for the mortgage lender, as well as the borrower. Loan modification benefits are many and include:
- No harm is done to the home owner´s credit rating.
- Homeowner´s avoid foreclosure & can sell the home later on if they choose for a good value.
- Loan modification does not affect the neighborhood home values.
- Mortgage debt is “forgiven” instead of settling through stressful, and sometimes embarrassing,
- Loan terms are modified to work within the borrower´s financial means.
- The loan modification process is faster with a lot less red tape to deal with.
- Families get to remain in their cherished homes and neighborhoods.
· Loss Mitigation:
Here´s how the Loss Mitigation Process works:
- We review the borrower´s situation via a ?Snapshot´ of information the borrower has submitted. (What are the current realities and what is feasible for this home owner?)
- From our predetermination analysis of the home owner´s data, we recommend mortgage loan modification and other loss mitigation options to the borrower.
- When the borrower decides upon a course of action, we craft a borrower financial outline in great detail for presentation to the loan servicer.
- We actually mediate a loan modification program directly with the mortgage lender on behalf of our borrower clients.
Loss mitigation outcomes may include:
Loan rate modification
Mortgage principle reduction
A new fixed rate loan
Partial debt forgiveness with short sell
Decreased monthly payment
More and more smart lenders are participating in loan modification and loss mitigation programs that help borrowers to remain responsible homeowners. We often present clients for loan modification assistance well before foreclosure becomes an issue. The best time for borrowers to consider mortgage loss mitigation is when the loan is just starting to become problematic.
· Mortgage Forgiveness Debt Relief Act
If you would like more information, please contact me.
Bob Phillips, of Realty ONE Group, 949-643-2100, Email: BobPhillipsRE@gmail.com