Is Loan Modification Right For You? will it stop foreclosure?

You may be one of many home owners who does
not realize that loan modification can help

stop foreclosure. Do you know what the
requirements for a loan modification are?

Here is what your lender is looking for:

Hardship - Your lender wants to see a hardship letter. The lender has to understand what has changed in your life that you now can not afford paying your mortgage. Such as illness, loss of job, adjustable mortgage going up, divorce, etc.

Your determination to keep your home - Your lender has to see that you are serious about fighting foreclosure to stay in your home.

Ability to pay - You must show your ability to afford a lower payment after your loan modification is done. You will also be asked to provide supportive documentation such as:

2 years of W-2.

3 months of bank statements if W2 and 12 months of bank statements if self employed.

2 months pay stubs or 12 months of P&L if self employed.

Details of expenses.

Debt to income ratio of 31% (Your monthly debt payments divided by your gross monthly income.)
Lender's bottom line:

Your lender is only interested to maximize his profit and minimize
his losses. You and I have an emotional attachment to our homes,
to the lender you are just a number.

If you are not paying your mortgage, you are a non performing
asset. The lender's goal is to make you once again a performing
asset in other words you must make your lender money.

Remember your lender has their best interest in mind not yours.
Foreclosure burden:

Foreclosure is a burden on both, you and the lender.
A typical foreclosure, costs your lender between
$60,000-$80,000. If the lender can save
money by modifying your loan, they will.
What CAN the lender offer in loan modification:

Forgiveness of past due payments.

Past due payments are added to the back of your loan.

Lower interest rate.

A fixed rate.

Extension of the term of your loan up to 50 years.

An interest only payment.

An introductory fixed low rate for 3-5 years.
Those are some of the many options that a loan modification can
offer you in order to stop foreclosure.
Can you modify your own loan or should you use a negotiator?

Yes in theory you can modify your own loan and in rare cases
succeed. The reality is that your lender is receiving thousands of

phone calls from distressed home owners like yourself who need
help. Your lender is not equipped to handle it.

See what nine-term U.S. Congresswoman Maxine Waters
experienced when she tried to do it herself. If you are already
late on your payments, when you call your lender you will be

transferred automatically to the collections department and all
they can do is collect a full payment of you owe or offer you
a forbearance (Payment plan) agreement.

Are you not behind yet?

If you are not behind on your payments you can try to contact the
loss mitigation department of your lender, explain the nature of
your hardship and request a loan modification. Nine times out

of ten, your lender will not be able to help you saying that you
are in good standing and therefore from the lender's stand
point you can afford your payments.
So you see it kind of confusing and frustrating to say the least.
When you are still current they most likely will not help you and
when you are behind they will ask you to be current first before

they can help you. People like you and I are loosing their home
on account of the lenders run around and lack of support.

When you work with an experienced team of modification
specialists, they will represent your best interest not your lender's!
Here is an example of the confusion in the industry

Just last week I had woman call me on Friday afternoon in a frantic
state asking for help because her home was scheduled for sale the
following Friday. She told me that she has been working on her own

with her lender for 4 months on a loan modification. All she got was
the run around treatment, empty promises and her home to be sold
regardless of her efforts to comply with all the lender's requests.

I am pleased and thankful that I could help her.
I managed to stop her house from being sold in the very last day

because of the great negotiator team I work with.
Now we are working with her lender to modify her loan.

This gives you an idea of why so many are loosing their homes to
foreclosure.
Don't waste till the last moment. Call me today. I understand how
you feel. I am on your side. I will save you a lot of time and
your nerves.

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