Loan Modification is also a great solution for a borrower who wants to stay in their property, but can't afford the payment to adjust upward, or can't quite afford the current mortgage payment. In that situation, a mortgage pay rate reduction is an ideal solution because it will lower the monthly mortgage payment to a manageable amount. Loan Modification is also a solution when the payment has not been made for a while, but the borrower can now afford to start making payments again.

The type of Loan Modification that is most beneficial for a borrower behind on mortgage payments is called a “recapitalization agreement.” A Recapitalization agreement takes all the arrears, interest, fees, and accumulated payments and adds it to the principal of the mortgage loan. The result of this negotiation is a slightly larger principal loan amount, but a status of “current” on the mortgage loan payments going forward.

As an alternative to a mortgage pay rate reduction, if you are unable to make payments at the current rate, we can often negotiate with your lender to extend your loan for a longer period of time, modifying the loan amount to a more affordable level. A Loan Modification will change your existing mortgage loan and give you a fresh new start in managing your home. Your account will be brought up to date immediately. To get started on a Loan Modification case, simply print and sign the Retainer Agreement and return it with a cashier's check for the appropriate amount. We will follow up with you on what documents we need.

99% of all ‘A’ type lenders and 70% of sub-prime lenders (with high interest rates) and general creditors will negotiate a loan modification and/or mortgage pay rate reduction where most or all of the delinquent payments and foreclosure fees are added on to the back end of the loan. Payments can remain approximately the same. In some cases the interest rate will be reduced permanently.

FORBEARANCE PROGRAMS

Typically 30% of sub-prime lenders (with high interest rates) will only offer a workout program that requires borrower to immediately pay at least 20% or more of the total delinquencies including foreclosure fees, plus the balance of the delinquency will be added to their regular monthly payments over a short period of six to forty-eight months. Forbearance plans do not remove a foreclosure action or stop foreclosure but simply continue it in place until the loan is current.

FORBEARANCE PROGRAMS ALMOST ALWAYS FAIL IF THE LENDER IS NOT FORCED TO CONSIDER THE ABILITY OF THE BORROWER TO PAY. WE REQUIRE THEM TO CONSIDER YOUR ABILITY TO PAY.