What is a Loan Modification?
A Loan Modification is a permanent change in one or more of the terms of a mortgagor’s loan. It allows the loan to be reinstated, and it results in a payment the mortgagor can afford. Use a loan modification plan to stop foreclosure. If you can currently make your regular payments, but you can’t catch up with the past-due amount, we will negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance.

If I am in foreclosure can I still get a loan modification?
YES, if you can clearly show a sensible plan to the lender. You can still get a modification of terms.

Do I have to be behind in payments to get a loan modification?
No, lenders prefer you contact them before you miss a payment however, modifications happen for borrowers in both situations.

Don’t I need to have good credit?
No. Lenders are willing to work with you when you can show you have a plan and can afford the new terms of the loan.

Can I get a loan modification if I have a first and a second mortgage?
Yes, you may combine both the first and the second mortgage or the lender may waive the second.

What happens to late charges if my loan gets modified?
The late charges should be waived by the lender at the time of the Loan Modification.

How long do I have to act?
Time is of the essence when you are behind on house payments. Each day that passes makes it that much harder to get a work out agreement with your lender.

What is a foreclosure?
Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments.

 

What is a loan workout?
A loan workout is just another term for loan modification. However it is broader term that can be applied to several other loss mitigation techniques, such as negotiating a short sale and a deed in lieu of foreclosure.

What is predatory lending?
This refers to the practice whereby a creditor puts a borrower into a loan that the borrower will probably not be able to repay. Federal laws like the Truth In Lending
Act ("TILA") and the Real Estate Settlement Procedures Act ("RESPA"), as well as
many state laws, require that creditors disclose certain terms of loans to borrowers,

What is a loan forbearance?
Forbearance means you are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status.

What is a deed in lieu of foreclosure?
The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principle advantage to the borrower is that it immediately releases him from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may
receive more generous terms than he would in a formal foreclosure.

What is a short sale?
A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount.