The purpose of a mortgage loan modification is to simply help the home owner remain in their home with monthly payments that they can afford. Recent government incentives make mortgage loan modification a win/win situation for both the home owner and lender.
Q. What kind of Borrower qualifies for a mortgage loan modification?
A. Each lender has its own policies, but the general requirement is that you have a job and be able to prove a financial hardship. This tells your lender two things:
1. Falling behind in your monthly payments wasnâ€™t entirely your fault
2. Modifying your loan can really help you back on your feet.
Q. What is a good example of a modifiable loan?
A. Anyone in financial trouble may be helped, but certain conditions can make our job easier. Ideal clients are those who:
– behind in payments or are already in foreclosure
– have received a notice of default
– have an adjustable-rate mortgage that has already increased
– have negative amortization loans
– are experiencing financial hardships due to bad or predatory lending, income reduction or illness or other â€œhardshipâ€
– steady source of income to pay the modified payment
The â€œText Bookâ€ file is a mortgage holder that has an adjustable rate mortgage (ARM) and is having trouble making payments after the adjustment or foresees a problem after the adjustment happens. All types of loans can be modified: ARMâ€™s, negative amortizing loans, interest only loans, investment or commercial property.
Q. Can unemployed homeowners be helped?
A. No. You need a source of income to qualify for mortgage loan modification.
Q. Do you count the income of people who are living in the home but are not on the title?
A. Yes. The total income of the household is considered, not just the homeownerâ€™s income.
Q. I need financial help paying the mortgage payments that are behind. What are my options?
A. Many people think they need to pay off their debts before they can try anything else. Thatâ€™s simply not the case. Mortgage modifications can be very powerful and very flexible. During a modification, itâ€™s possible to eliminate back payments you owe in addition to lowering your monthly bill.
Q. Do I need to be delinquent or behind in my mortgage?
A. No, but it will make things easier. Loan modification is meant to help people in financial hardship, and banks are more willing to help borrowers in trouble and that typically means you are behind in your payments.
Q. Iâ€™m already behind on my mortgage payments, is there anything I can do?
A. There are always options. If youâ€™re behind on your mortgage, you may be a perfect candidate for a loan modification. It can help save you money by lowering your mortgage payments and stop foreclosure process that may be threatening your home.
Q. Is it too late to help clients who are in foreclosure?
A. Definitely not! Foreclosure can be prevented up to a few days before the actual transfer sale date. However, if you are thinking of getting help, please donâ€™t wait until you have received a notice of sale. Itâ€™s important to take action.
Q. Can you help me stop foreclosure?
A. In most cases, help to starve off foreclosure is achieved by negotiating with your lender or servicer. Remember they do not want to own your home. That is a lose-lose situation. A hold can generally be put on your foreclosure status, but youâ€™ll need to act quickly. The sooner you begin working on this issue, the easier it will be to stop the foreclosure process – even if youâ€™ve been in the foreclosure process for a while.
Call 904-757-0880 for more information and to see if you qualify for mortgage loan modification.