Some of the commonly asked questions here along with the answers
1. Why would my lender want to modify my mortgage?
Most lenders took TARP money from the federal government and are required to help you if you qualify for the program. A foreclosure cost lenders on average 50K, if the lender can modify your mortgage ay to the tune of 40K the way the situation is they are saving 10K. Every time a lender forecloses on a property they need to keep 5x the amount of that bad debt in cash on the books, lenders can’t afford to do that. Your lender knows you could probably go buy another property in your neighborhood for 30% that what your current property is mortgaged for. Your lender doesn’t want another vacant, dilapidated property on their hand they are in the business of collecting interest and something is better than nothing. Your lender isn’t in the business of selling real estate.
2. What is the process like?
What we do next is Net Present Value (NPV) Test the same software the lender uses
Next we perform a loan analysis.
Then we upload your information to our payment processor.
At that point will send you the package release form complete the form and return it to us.
Please contact us to confirm receipt.
Then we will send the complete package which is essentially 2 steps.
Step 1 you are sending 2 letters to your lender that have already been written for you.
The 1st letter is Qualified Written Request (QWR) which your lender has to respond to per RESPA. (Real Estate Procedures Act)
The 2nd letter is called a Demand Letter your lender has to respond to per Truth in Lending (TIL).
The remaining forms get sent to us for review before being submitted to the lender.
3. I’ve been turned down before why will this time be different?
While program guidelines change all of the time, our legal letters ensure your lender won’t try and “push us around or strong arm us into a situation that’s not in your best interest”.
4. How do I know I qualify?
We ask you a list of questions during the interview process based on the program guidelines to determine eligibility. Usually if you don’t qualify for a refinance you will qualify for a modification.
5. How much money can I save?
Typical changes to your monthly mortgage payment can be equal to 31% of your gross income, reducing the interest rate down to a minimum of 2%, extending the amortization of the loan to a maximum of 480 months or a forbearance of the unpaid principal balance typically no greater than 30%. Usually clients make back our fee in 7 months or less.
6. Are 2nd homes and investment properties eligible for a loan modification?
Dont’t believe in our word’s, But believe to the clients
Approved By Wellsfargo for Modified payment of $3916, Reduced from $5123.50, Total Monthly Saving $1207.5
Approved By Freedom Mortgage for Modified payment of $1,146.50, Reduced from 2,085.50, Total Monthly Saving $939