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Loan Modification FAQ’s PDF Print E-mail

What is a loan modification?

A negotiation with a lender to restructure the terms of a loan without refinancing, usually resulting in a lower interest rate and therefore a reduction in monthly mortgage payments.
   

Who qualifies for a loan modification?

A homeowner who can prove they have experienced or in the near future will be experiencing a financial hardship can qualify for a loan modification.  This encompasses a homeowner that is current on their payments or anyone up to 14 days out of a sheriff sale date.
     

What situations qualify for a hardship?

Several cases: decline in income, increase in a mortgage payment due to the rate increasing, severe illness, divorce, incarceration, etc.

 

Why should I work with a loan modification company instead of doing this on my own? 
Many clients attempt to accomplish a loan modification themselves and are unsuccessful for numerous reasons, one being their unfamiliarity with what the lenders look for in granting a modification and another being patience as a typical hold time to accomplish a modification can be hours a week for numerous weeks.  
       

LENDERS HAVE THEIR BEST INTEREST AT HEART, NOT YOURS, SO EVEN CLIENTS THAT ARE SUCCESSFUL IN ACCOMPLISHING  A LOAN MODIFICATION ON THEIR OWN USUALLY DO NOT RECEIVE THE  SAME INTEREST RATE OR PAYMENT REDUCTION A LOAN MODIFICATION SPECIALIST COULD ACCOMPLISH!

 

  
Why should I work with Loan Michigan and not another loan modification company?
All loan modification companies differ in what they offer, how much experience they have and how much they charge in fees.  We believe our company has a competitive advantage for several reasons:
   
  • Our company offers superior service as everyone on our team has several years experience in the mortgage industry and we have developed relationships with the loss mitigation specialists at the banks.  We are also a local company based out of Southfield, MI and are able to meet with clients in person versus several loan modification companies that are based out of other states.

 

  • Our company offers a free pre-approval where several companies require a fee be paid before a pre-approval is granted.

  • We do not require all fees be paid up-front, in fact our initial fee is only $695.

 

  • We offer a money back guarantee less a $295 processing fee if a modification is not completed whereas several other companies may keep the entire payment. 

 

  • One owner of our company is a C.P.A who has several years of training in evaluating financial documents.

 

Is there a fee and why do I have to pay a fee?
Yes, there is a fee, what we do is a service, just like you are serviced by a mortgage broker and a realtor when purchasing a home.  We are experts at what we do and our business is loan modifications, which means we spend a significant amount of time working on your behalf!  Our fees vary depending on the complexity of your loan and they range from $999 to $1,495.
  
What exactly am I paying for?
Based on our knowledge we offer you a FREE pre-approval.  Once pre-approved and working together we perform an in depth document evaluation, perform a thorough income analysis, package your file, create a financial worksheet, create a proposal, pull an estimated value of your homes current value and provide any other additional documents we may need to support your case.  We also offer assistance is writing your hardship letter which is a very key piece of a loan modification.
     
How will a loan modification affect my credit?
Loan modifications have no negative effect on your credit, they can actually help your credit if you are late on your payments because they bring you current.
         
What type of modification can I expect?
All modifications vary depending on each individual case.  Modifications will typically be a fixed rate and will usually be an interest rate reduction.  If you are behind on your payments most modifications will bring you current.  Some modifications are permanent and some are only temporary.  All we can promise you is that we will do our best to accomplish the best modification possible that the bank will accept!

 
 
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