Loan Modification


Loan Modification is a process whereby a homeowner’s mortgage is modified and both lender and homeowner are bound by the new terms. The most common modifications are lowering the interest rate, reducing the principal balance, ‘fixing’ adjustable interest rates, increasing the loan term, forgiveness of payment defaults & fees, or any combination of these.

  • will assess  your ability to pay your mortgage through the analysis of wage statements, investment accounts, bank accounts and tax returns, among other data.
  • Then we will make a detailed proposal to your lending institutions for restructuring of mortgage terms in a fashion that will enhance the likelihood of repayment.
  • will negotiate on your behalf.
  • We have built strong relationships with all lenders.
  • We are also hired by these lenders to help salvage troubled loans.
  • Mortgage Companies have an interest in offering concessions to troubled borrowers because of the extremely high cost of foreclosures.
  • Lenders do not want to take possession of illiquid real estate, especially in falling markets.

The loan modification plan focuses on people who are behind in their payments or are at risk of default.
Federal officials clarified the definition of “at risk” as those: suffering serious hardships, declines in income or increase in expenses; facing an interest rate hike; having high mortgage debt compared to income; owing more than their house is worth, or demonstrating other reasons for being close to default.
To participate in the loan modification plan, borrowers must:

  • have obtained their mortgage before Jan. 1, 2009;
  • have a primary mortgage of less than $729,500;
  • live in the property;
  • fully document their income by providing tax returns and pay stubs;
  • sign a statement of financial hardship;
  • go for counseling if their total household debt – including auto loans, credit cards and alimony – totals more than 55% of their income.

The modification program will be in effect until the end of 2012, but loans can only be adjusted once.

Call Today @ 888-877-0078 for a FREE analysis of your situation.

Housing Assist Coldwellbanker