Loan Modification
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| Behind on your Mortgage? Unable to Refinance? Facing Foreclosure? |
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| A Loan Modification will Transform Your Existing Loan! |
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| BPW Loan Modification Specialists can negotiate with your current lender if you are having trouble with your mortgage,Facing default or foreclosure. |
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| Home loan modifications are designed to save homeownership, but they've also created a new mortgage maze pitted with "buyer bewares." A home loan modification, granted only upon the existing lender's approval, permanently reworks some of the terms of an existing mortgage in order to make the loan more affordable to the homeowner. |
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| Is a loan modification for you? A loan modification isn't for everyone. A loan modification may not be viable if: |
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| - | The modified loan comes with payments you still can't afford. |
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| - | Your current interest rate is already low and there's no room for the lender to lower it further. |
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| - | You can make the new payments, but the mortgage balance is greater than the value of your home and you don't plan on staying put long enough to reverse the loan-to-value imbalance. |
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| - | You have not already missed payments on your mortgage or can't show financial hardship due, say, to job loss, pay decrease, illness or interest rate increase. |
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| - | You have other properties, investments or assets that could be liquidated to cover your mortgage debt. |
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| - | A short sale (The lender forgives a portion of the debt owed if you can find a buyer), bankruptcy, auction sale, refinance or other approach, short of a foreclosure, is a better option. |
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| You can do a loan modification and not be aware of where you stand. You can get a loan modification for a home you don't want to be in. A financial, housing or credit counselor can help you determine your best option. Just be prepared to hold down the fort for the 60 to 90 days or more it could take to complete the modification, due to potential complications and document processing times. |
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| Common "Myths" about Loan Modification |
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| Provided By: DETROIT--(BUSINESS WIRE)-- Ralph R. Roberts, consumer advocate and spokesperson for Federal Loan Modification Law Center, today released a list dispelling the top five myths about loan modification. Intended to better educate homeowners facing the prospect of losing their home in foreclosure, the following list demystifies the most common misconceptions surrounding the loan modification process. MYTH #1: My bank wants me out of my house. My bank wants my home. Banks and other lending institutions do not want to foreclose. They earn more money if you can make your payments. When they foreclose, they not only lose your monthly payments, but they also have the expense of foreclosing (attorney fees), rehabbing the home, and then selling it (agent commissions). In today's market, there's a good chance they'll have to sell the home at a loss. This is all good news for you – it means the bank is highly motivated to make a deal with you. MYTH #2: My credit score is bad so I won't qualify. Unlike the option of refinancing out of trouble, which requires you to apply for a new loan, loan modification simply adjusts the terms and perhaps reduces the balance of a loan you already have. Your credit score is much less of a factor in determining whether you qualify for a loan modification. In addition, a successful loan modification can actually improve your credit score over time, especially if it prevents you from ending up in foreclosure or bankruptcy. MYTH #3: I am not late on my mortgage payments so I won't qualify. I have to miss a payment to be eligible. Early on, this was true. In fact, some early eligibility requirements stated that you had to be 61 days delinquent in order to qualify. In other words, you would have had to have missed two full payments. The truth is that the eligibility requirements are constantly changing and differ among lenders. Many lenders are now working out loan modifications with borrowers who are up to date on their payments. It's difficult to determine whether you qualify until you actually discuss your situation with the lender or with an attorney who is knowledgeable and experienced in loan modifications. MYTH #4: I would be better off walking away or declaring bankruptcy than modifying my loan. Walking away from the home and filing for bankruptcy are certainly two options, but they are rarely the best options when you are facing foreclosure. If you simply walk away, the lender is unlikely to pursue legal action against you, but in some jurisdictions, the lender can pursue a deficiency judgment against you to collect the difference between what the lender receives for your home at auction and what you currently owe on the balance of the mortgage. Filing for bankruptcy may be better than just walking away, but it can leave a blemish on your credit history that makes it difficult to borrow money in the future. A successful loan modification is almost always a more prudent choice. MYTH #5: It's too late. I have already received a foreclosure notice. As long as you still reside in the home – that is, you didn't voluntarily abandon it, and the home hasn't been sold at a foreclosure auction – you may still have time to work out a loan modification with your lender. The sooner you take action, the more options you have available and the more time you have to pursue the best option, but you can still negotiate late into the process. By contacting the lender or, better yet, having your attorney contact the lender on your behalf, you demonstrate a good faith effort to work out a solution and can often buy yourself extra time to negotiate a loan modification. |
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| Helpful Links: TBD |
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| Testimonials:
“I had no idea what to do with my mortgage the way it was. My rate adjusted and I couldn't afford to pay my mortgage in full. I fell months behind. I found BPW online and decided to try them out. Not only did BPW help to lower my payment, but they also saved my credit and my home! I am so grateful, thank you so very much for your help and confidential professionalism! Highly recommend!“
-Williams Family 2/09/09
“My wife and I are very grateful for your service. Our relationship suffered because of the issues you helped us to resolve, saving us thousands, bringing our payments down, consolidating our debts, and really caring about our financial situation. Our home is now refinanced and we have received the loan modification. We thank you SO Much!”
-Jim Burton, 4/19/09
“I was forced to have to short sell my wife and I's dream home. We were literally struggling big time after I lost my construction superintendent job. I heard from a friend that there is a way to lower you house payment mortgage by calling the lender and renegotiating something. I called BPW Loan Modification Specialists for answers to questions I had and they decided to prove to me it works. They handled the whole thing with the lender. My wife and I now have a $650 less month house payment and don't have words enough to express our appreciation. It was a GREAT investment too because money we paid them out of pocket is far surpassed by the first 2-3 months of savings from our previous mortgage payment. Thanks BPW for the fantastic Loan Modification help!”
-Morney Cleavert 8/08/08
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