How Loan Modification Works

The Loan Modification process works like this:

First, we need to understand your unique situation. So please complete our no obligation form so that we can conduct a Free Loan Modification Evaluation. Then you can expect a free phone consultation after completing the form.

Second, if you choose to use our services, our loan modification professionals will contact your lender within 2 business days to begin negotiating the loan modification. The negotiations vary by lender and can take anywhere from a few days to several months. We will keep you abreast of our progress.

Third, a Loan Modification specialist will outline and explain your options to you.

Last, you choose the best option for you. One modification option may be a reduction of your interest rate to as low as 2%. If your interest rate was 2% would that make it affordable enough for you to keep it? Our goal is to help you be better prepared to make your mortgage payments and get back on track!

IMPORTANT: There is no such thing as an EASY ‘Do-It-Yourself’ loan modification kit. It's important that you understand how they work so that you can ensure you're getting the best deal possible for your situation. Also, be aware of a loan modification scams:

- Avoid businesses that guarantee to save homes from foreclosure or stop the foreclosure process “no matter what the circumstances.”

- Do not work with businesses or individuals who instruct you not to contact your lenders, lawyers or financial counselors and/or instruct you to make mortgage payments directly to the business or individual.

- Avoid businesses that use names or symbols which mimic federal and state programs or falsely suggest they offer legal services or are affiliated with an attorney or law firm.

Many homeowners have had very frustrating experiences when attempting to modify their own loan (as shown in this loan modification video). It’s obvious why this happens. Right now, millions of homeowners are attempting to modify their loans, just like you. Your bank is being flooded with phone calls for loan modifications as we speak and often from homeowners who are ill-prepared to negotiate and then make such a crucial decision. The bank will certainly have a professional negotiator on the phone to attempt to preserve profits, if you do get through.

Below is the work that actually goes into modifying a loan:

First, we interview potential loan modification candidates to properly asses their situation.

Second, based upon the information provided to us, we perform a net present value test (NPV). Essentially, we compare the NPV of cash flows with and without a loan modification. The parameters of the NPV test are spelled out under the Make Homes Affordable guidelines and allow us to apply acceptable discount rates, property valuation methodologies, home price appreciation assumptions, foreclosure costs and timelines, and borrower cure and default rate assumptions. If it sounds like a lot, it is. We are dealing with your home and we don’t take this lightly.

Third, we follow specific guidelines to reduce your monthly payment to no more than 31% of your gross monthly income (Debt To Income - DTI). To calculate debt we must include principal, interest, taxes, insurance, flood insurance, homeowner’s association and/or condominium expenses and fees. To calculate income, we must include monthly wages, salary, overtime, fees, commissions, tips, social security, pensions, and all other income. You will be asked to provide proof of the above.

Fourth, the modification sequence requires first reducing the interest rate (subject to a rate floor of 2%), then if necessary, extending the term or amortization of the loan up to a maximum of 40 years, and then if necessary, forbearing principal. Principal forgiveness or a Hope for Homeowners refinancing are also options at our disposal.

Fifth, we present our findings directly to your lender. A negotiation follows. This step is the most critical and you only get one chance.

Our Value

Our mission is very clear and simple: Help homeowners. In order to accomplish our goal we will provide the best experience we can. There is a fee for our service as we incur actual expenses and the service requires a great deal of time and expertise. However, we do offer a money back guarantee, as detailed in our agreement. Please ask your Loan Modification representative for details.

Please complete our form for a free evaluation!