Having Problems paying your loan? Loan Modifications & Loss Mitigations

What is loan modification?

Changes in your loan by the lender to help you avoid foreclosure
You basically refinance without paying high costs of refinancing…..
Banks do not want to own your home or prospering from your misfortune

I. Introduction to Loss Mitigation/Loan Modification
We all know that life is unpredictable, and that circumstances often arise that can prevent you from making your mortgage payments. Even hard-working people can encounter unforeseen situations which may affect their ability to pay their mortgage in a timely manner. Many issues can be contributing factors such as interest rate adjusting, illness, loss of job, reduced income, failed business, job relocation, death of spouse, divorce, marital separation, or even high medical bills. Just one of these situations can have a direct bearing on making home mortgage payments.
What is a Loan Modification? Loan Modification- This term has been getting a lot of attention lately and rightfully so. With millions of homeowners stuck in toxic adjustable rate mortgages and no ways to refinance out of them, loan modifications may be the only way to assist struggling borrowers. This term is used when your lender modifies your current mortgage (same loan you have, only changes are made to the note) in order to work with you and make your mortgage more affordable. A modification to your rate, balance of loan, delinquent fees owed, term of loan etc. can be made by the Lender. In the past this was only used when a borrower was delinquent but now we will see it being used before someone is delinquent. This will be the hottest term and the best way to help people avoid foreclosure.
Why, you might ask, would any bank be willing to change or even negotiate your loan terms? The reason is because banks already own over $50 billion in foreclosed properties and the last thing they want is more homes for their portfolio. It is in the banks best interest to negotiate the terms of your loan as an alternative to having to pay the high costs associated with the process of foreclosure. A loan modification is the banks best way to ensure they are paid back any money owed for the mortgage plus interest. This is a win/win scenario with the bank avoiding owning another property and potentially suffering huge losses, and more importantly ensuring your family can not only keep your home, but also maintain a mortgage payment you will have the financial capability to afford.
One of the best parts about this service is that you can potentially attain all of the benefits of refinancing without having to pay all the high costs of a refinance. Refinancing can often cost in excess of $10,000 when you take into consideration the appraisal, title, escrow, and loan origination fees. We realize that “value” in business is hard to come by, and the last thing we want to do is put our clients in a bind that could potentially lead to more financial difficulties down the road, which is why we only charge $2,000 for this service. Compare that with the costs of your last refi! Similar companies are charging anywhere from $4,000-$10,000 for this very same service!