What is a Mortgage Modification?
A Mortgage modification or Loan Modification is a term that is getting a lot of attention recently. Millions of homeowners are stuck in mortgages that have adjusted recently or are getting ready to adjust. This is causing mortgage payments to skyrocket. With home values declining the ability to refinance out of that high rate adjustable mortgages is no longer an option. This is causing a large number of homeowners to fall behind on payments which has lead to a growing number of foreclosures across the US. Hardest hit areas have seen home values declined as much as 30% over the last 18 months. A loan modification is the process of convincing the lender to modify the terms of the note. This may include recasting the note to a lower interest rate, lengthen the term, payment holidays or many other scenarios to make the mortgage payments more affordable for the borrower. This new wave in the mortgage industry has already saved thousands of homeowners from foreclosure.
Can I accomplish this myself?
Yes you can. You can negotiate directly with your current lender, just as you may represent yourself in other legal proceedings. The only problem is most mortgage lenders are huge companies. It is almost impossible to get a human on the phone and when you do it is a low level person that has no decision making power. When and if you do reach someone that may listen to your situation, you must be ready. Your best opportunity to impress your lender will be at that time…. so you better be prepared with all the data necessary to convince the lender that it is in their best interest to help you out. There are services which are designed for individuals that feel that negotiating with their lender over terms such as “special forbearance” and “loss mitigation” is something they were just not comfortable with. These services have the expertise to assess your current situation, formulate a strategy, and present your case in the best light to your mortgage lender. They will also negotiate to lower rate, extend the term and lower your payments. No appraisal, credit or closing costs are necessary; this will allow you to save you thousands of dollars right away. MortgageMobile.com has credible mortgage modification organizations in our network which we can refer you to. Fill out the form below and we will call you immediately.
Washington Post Article
Emergency Mortgage Loan Modification Act of 2007 H.R. 4178
CNN Money Article April 2008
BankUnited Mortgage Modification Program / Mortgage Assistance Program (MAP)
Mortgage insurance covers a lender whenever the borrower has a hard time to reimburse his loan. The worth of mortgage insurance is set upon the premiums paid by the borrower.
