What is a Loan Modification ?

What is a Loan Modification ?

A loan modification is basically when a homeowner facing hardship tries to work with their lender to change the terms of their mortgage loan to make it more affordable. Terms and conditions of a loan modification can vary depending on the lender involved. Adjustments to the loan can include temporary or permanent changes to the mortgage interest rate, terms of the loan and/or monthly payment amount. Be aware that past due amounts and/or the difference in the new lower monthly payments are typically rolled into the loan, and the new balance is re-amortized. This can put the homeowner in an even worse position, placing them further underwater when you compare the loan amount to market value of the home.

How does someone get a loan modification ?

Call your mortgage servicer and ask to be considered for a "Home Affordable Modification", or HAMP. The number is on your monthly mortgage bill or coupon book. Honestly and clearly tell them about your situation. They will assess your financial state through phone calls and paperwork to determine whether you qualify for a loan modification. Keep copies of all mailings between you and the lender and take detailed notes on who you speak with and what you talked about. Details of your conversations give you documentation down the road if you are faced with foreclosure. Be sure to watch the clock on all of this though, because when you're applying for a loan modification, you are on the lender's time table and we've seen many homeowners who were still waiting for the loan modification when they received foreclosure paperwork in the mail. If you've been late on your mortgage or you're at a point where you know you can't pay on time anymore, call us and we'll explain all of your options without the waiting! You can email me at jenyounghomerescue@gmail.com or you can apply for information online by clicking here apply online now. If you would prefer to discuss it on the phone, or set an appointment call me Toll Free at 866-433-6474 or call my cell directly at 703-400-6757. We also have an agent to help our Spanish speaking clients, just call Mimi Tyrie at 703-542-3178.

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