Office Phone: 614-741-4248
E-mail: lendfunds@gmail.com
Did you know......?
That if you've recently been turned down for a home loan due to:
***A decline in your homes market value due to lower property values?
***A layoff or unforseen event that led to late mortgage payments?
***Bought high or into an adjustable or "teaser" interest rate?
these are all good examples of reasons to consider a loan modification.
What is a loan modification???
***Your Lender may agree to modify the terms of your loan such as reducing monthly payment amounts, reducing the loan balance or the interest rate, or adjusting an adjustable interest rate.
Why should my family consider a loan modification??
***Save your home! For many around the nation it's become somewhat of a last resort. If you have evidence of a recent hardship but can still prove that you are able to repay the note, your lender may be able to place you in an affordable payment. Lenders do not want to foreclose on your home unless they have no other alternative. When presented with a realistic professional proposal that makes sense, they are very open and receptive to the loan modification process.
Who is considered a good candidate for loan modification??
*** Generally lenders consider divorce/separation, loss of income, death of spouse, co borrower or family member, illness, job relocation, military service to be acceptable reasons. A compelling Loan Modification Hardship Letter is important in a successful application.
Why Loan Modification??
***Those facing foreclosure will need to rent a home, they will need a security deposit and first month’s rent, in addition they will incur moving expenses and some will not rent to those in foreclosure. It takes 3 years after foreclosure to purchase again, save your home! Many modifications have reduced principle balances saving on interest and usually cost less then refinancing if working with a company.
Can I do a loan modification myself??
**That is entirely up to you and your comfort level with dealing with your lender, but also your current financial situation as most loan modification companies require a large upfront fee. Regardless of what you decide, the first thing you should do is learn all you can about the process, your legal rights, and what it takes to get your application approved. Most Loan Mod companies will refund a portion of your monies if they are unable to work new terms out with your current lender. You can represent yourself in court, but it doesn't necessarily mean you would want to. Make sure to work with a company that can provide successful case files and is backed by an attorney.
What can I expect during and after processing is complete??
***It is essential that you fill out paperwork COMPLETELY and that you attach any and all documentation that has been requested.Have your Loan Modification Hardship Letter clear and to the point. No more than 1-2 pages, and handwritten is best. This explanation is one of the most important parts of a loan modification proposal and is one of the first things your lender looks at.Tell them what was causing you to struggle, what you are doing or did to overcome the problem, and exactly what you want them to do for you.supply the lender with proof of your income, along with a complete and accurate financial statement detailing your income and expenses to show them that if granted the modification, you will be able to afford the new, lower payment.
Regards
Example Question:
Q: What is the proper mortgage for my income?
A: Usually 28% of your gross income is acceptable to conforming mortgage companies. Take your W2 and divide the total by 12 for a monthly income figure. Then multiply that by .28 to get 28%. That 28% of your income should be enough to pay for principle, interest, tax and insurance.
For example if your total income was $24,000 per year, divided by 12 = $2000 per month. 2000 X .28 = $560. Your total payment is not to exceed $560. If the payment seems too high, then ask to be qualified for a lower payment. Just because you can afford a payment on paper, doesn't mean your life style has been factored in!
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