07 Nov 08 Loan Modification – Frequently Asked Mortgage Relief Questions

What is a Loan Modification and How is this Mortgage Relief?
A loan modification is the process of changing mortgage terms with your lender in a revised agreement called a mortgage note modification. Typically a loan modification will see an interest rate reduction and or a stretched amortization schedule. (ie. 7% 30 year adjustable rate mortgage gets modified to a 5% 40 year mortgage with a fixed interest rate. ) It is important to note that a mortgage loan modification is different than forbearance in that with a loan modification, your mortgage terms are completely changes, whereas forbearance only provides mortgage relief for a few months before your loan terms revert back to the original agreement.

How Long Does the Loan Modification Agreement Typically Take to Complete?
It can be done in as little as 30 days, but typically it will take about 45 to 60 days, however 90 days is not uncommon depending on which mortgage lender holds that note for the loan you are attempting to modify.

How Does the Loan Modification Process Work?
The Loan Modification process starts with a forensic loan audit and a professional analysis completed by an experienced loan negotiator. They review your current mortgage loan’s terms (ie. Mortgage rate, ARM or Fixed, Debt to Income Ratio and the hardship letter) They look for opportunities to lower your monthly mortgage payment then present the affordable loan proposal to your mortgage lender.