Learn all you need to know about Loan Modification from Redomyloans.com
What Is A Loan Modification?
A Loan Modification is a permanent change in the terms of your existing loan. Lenders may restructure your loan by a reduction in the interest rate, an extension of the length of the loan, a lowered principal balance, reduction in the amount of accrued back payments or late fees, as well as many other options to allow you the affordability to pay your mortgage. If you are behind on your payments, struggling to make your payments, expect an adjustment that will cause you to fall behind, you are facing foreclosure, or fear foreclosure is just around the corner, then you are a candidate for loan modification.
Why is a Loan Modification better then refinancing out of my Current Loan?
Many borrowers are desperately behind on their mortgage payments, or in danger of becoming so. Many homeowners also owe far more on their home than the property is currently worth. Qualifying for a refinance these days is next to impossible for so many people, because they are "upside down" in their loans. Lenders are increasingly more willing to change the terms that you originally signed for, so that they can keep you out of trouble. It helps the bank too.
Why would my bank want to "Modify" my Loan? Wouldn't they just rather try to get as much money from me as they can?
In the past (when home values were high) banks were more likely to be rigid, because if you stopped making your payments, the bank knew that they could foreclose and recover much of your loan balance from the sale of your property at auction. Nowadays; as many sellers are finding out, their homes are worth 20%, 30%, or even 40% less than when they took their loan out just a few years ago. If you try to sell your home, you cannot even afford to payoff your mortgage balance. Well, neither can your lender at auction. Your mortgage lender is as terrified of taking your property to auction as you are of trying to sell in this market. So instead, lenders are more and more likely to change your terms and lose 5%, 6% or even 10% of their profits, rather than take a "bath" by trying to sell it at auction. Make no mistake; THE LENDERS DO NOT WANT YOUR HOME; THEY WANT YOU TO STAY AND PAY
Who Can Qualify For A Loan Modification? (you pre-qualify if you meet any of the criteria below)
- Denied a re-finance for any reason.
- Are currently 30, 60 or 90 Days Behind on your Mortgage.
- Your current Arm is set to adjust with a payment & rate that is too high for you to afford.
- You have "No Equity" left in your home.
- Notice of Default Delivered.
How Long is the Loan Modification Process?
The Loan Modification process usually takes 30-90 days, and consists of many lonf phone calls and negotiations. ReDoMyLoans.com will handle every aspect of your negotiation, and prepare comprehensive loan modification package to your Lender.
What is Required from me to do a Loan Modification?
- Signed Hardship letter explaining in detail your current financial stance.
- Signed Authorization.
- Prior 2 Years Tax Returns and W2's.
- Prior 2 Months worth of Paystubs.
- Prior 2 Months worth of Bank Statements.
- Mortgage Statements for ALL loan's including HELOCS.
- Signed and completed Financial Statement.
- Personal Check/Money Order or Cashiers Check for Consulting Fee's.
I'm interested in Speaking with a Loan Modification Specialist, what do I need to do?
You can either call us Toll-Free at (877) 735-5600 and speak directly with a Loan Modification Specialist, or you may fill out our Quick Pre Application or send us an email if you're pressed for time at contact@redomyloans.com