Loan Modification - The Process
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According to the HUD website, a Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan allowing the loan to be reinstated or modified, which in turn results in lowering the current mortgage payment. Loan modification is becoming mainstream in the mortgage marketplace. Many real estate professionals see the market leaning towards loan modification as a partial solution to the current mortgage crisis causing homeowners to lose their homes to foreclosure. The Loan Modification process allows a homeowner to keep their home as well as keep their FICO score intact, when packaged the right way. In short, loan modification is one option homeowners can utilize to avoid foreclosure, especially those who cannot get refinanced because they are upside down on their home or don't have the credit rating banks requires these days. 

Borrowers who contact their lenders directly and attempt to negotiate a loan modification usually do not succeed because they disclose vital pieces of informaton that may not be required, but are used against you in the approval process. The highest success rates occur for those who work with professional loan modification companies fully knowledgeable with RESPA and TILA guidelines.

Recent legislation at the state and federal level as well as some recent bank takeovers by the FDIC have made loan modification application a mainstream foreclosure alternative. Unfortunately, most Homeowners are having little to no success in modifying the terms of their loan, unless they are offered a repayment plan in which the lender allows the homeowner to pay back any monies that are in arrears over time. This is not a loan modification and the late payments would have already affected the borrower's credit and make it impossible for the homeowner to refinance.

There are three key elements in any loan modification or loss mitigation process:

The first would be lowering the interest rate of the first or second mortgage, which in turn will lower your mortage payment.

The second would take any missed payments and penalties and putting those monies on the back of the existing loan.

The third and most difficult is if you are upside down on your home. Having the lender to lower the principal balance  for what you owe, especially if there are predatory lending issues involved in your case. Once again, if  you leverage the right argument is very important. Loan modification is a long and tedious process and the Loss Mitigation departments are understaffed to meet the overwhelming demand of homeowners who are trying to find out their options from everything from late payments to foreclosures. 

Home-Loan-Solution.com has the experience and legal clout to bypass the loss mitigation department and work directly with your banks legal department if necessary, giving you the hightest rate of success in the loan modification process.

Here are the requirements for a loan modification:

Why use the loss mitigation experts at Home-Loan-Solution.com to do your loan modification?