1. What is a Loan Modification?
A Loan Modification is when the bank allows a change in the terms of your existing mortgage. You can ultimately lower your monthly payments by adjusting your interest rate, your principal or both. By doing so you will significantly lower your monthly payments
2. Can anyone qualify for a loan modification?
If you are having trouble paying your existing loan, or are currently in an adjustable mortgage rate, have a high interest rate, are upside down on your home, and/or experiencing any kind of hardship.
3. What if my credit is bad?
Your Loan Modification is not based on credit score, but more on your ability to pay back your loan under your current conditions.. The banks would rather have a good loan then a troubled loan.
4. What If I have no equity or is upside down on my home?
The banks will do a principal reduction, which means the bank will
discount the total loan amount to the current market value of your home.
5 What if my income is too low?
You will need to show the bank, your ability to repay your new loan. By filling out one of the forms which you will download, the banks will be able to adjust your payments according to your income..
6. What kind of modifications I may expect on my new loan?
A bank will modify your loan into a loan you can afford and continue to pay. One or more of the following modifications may apply (lower interest rate, payment reschedule, principal reduction, longer terms or any other function that will make and keep your loan.
7. Can I really save by doing a loan modification?
A typically loan is for 30 years.If the Loan Modification saves you $500 a month, that equals $150,000 over the life of the loan.
8. Do all banks do loan modifications?
Yes. All banks are willing to work with clients to help save their homes.