Loan Modification

This informaiton is not to be considered legal advise but solely as informative and subject to verification by your own attorney.

In order to qualify for a lona modification a home owner has to meet certain specific criteria dicated by lenders by which a home owner proves to the bank that the new mortgage payments can be made under the particular circumstances of the individual ability to pay.

Most banks do the loan modification through the same depatments handling the short sales and in many aspects the process is no different, except that they require verifiably income to proceed. The loan modificaiton may be available to a large number of home owners whom have seen their salary reduced or have had a reversal in their business with a permanent reduction of income.

The most important thing about a loan modification is to meet the banks financial criteria, job permanence, etc. as soon as possible and submit for review.

Call us as soon as you feel that the mortgage payment is becoming a serious hardship and the near future ability to stay current will or is already compromised. WE can help you determine is a loan modificatin may be the best alternative. We charge no fess for this consultaion as in most cases you need no one to help you with a loan modificaion except to know if you qualify within the bank's critera. For that you can contact your lender or their website and get the information yourself.

Be careful with all the loan modification outfits and law firms claiming they can do your loan modification. According to the FBI most of these companies are blatantly defrauding home owners who are underwater. It has been reported in the news that less than 3% of the home oweners are obtaining any modification at all. The reason is most home owners are underwater due to the loss of employment or drastically reduced incomes combined with higher loan payments.

For a loan modificaiton to be viable, most banks will require that you to have a steady job and that your monthly modifiedt mortgage payment be not more than 31% of your veifiable income. In order to determine what the new payment may be banks use several sphisticated formulas which recalculate the rate of return on their money and the length of time in which they need to recover the entire amount of the debt. There is very little chance of a reduction of the principal balance, unlike what most loan modifications firms advertise and want you to think.