A loan modification is simply the adjustment of terms within your current mortgage to come to a win-win agreement between you and the lender. This is done to offset the number of homeowners that may potentially lose their homes due to:

• Loss of job
• Medical expenses
• Increased mortgage due to a predatory loan
• Etc.

Arizona loan modifications differ quite a bit since the economy has taken such a harsh turn here. Unlike many places in the nation, Arizona has been hit among the hardest and homeowners are simply not able to absorb the burden any longer. Subsequently, lenders are becoming significantly more willing to work with homeowners in AZ.

Adjustment to the terms of a homeowners loan in Arizona vary widely. Due to the differing economy here, lenders have been known to adjust:

• Interest rates
• Term
• Principle Balance (although rare)
• Remove, adjust, or completely forgive late payments and legal fees
• Postpone notice of trustee sale, and even foreclosure altogether

Mortgage loan modifications take time, however. Even with lenders willing to work with Arizonans, there is still a lengthy process which is required to obtain a mortgage modification.

So, to get started as soon as possible, simply apply using the form to the right and find out if you qualify for a mortgage modification today! There is no obligation to apply.

Recently, there was legislation passed mandating that banks modify the mortgages of homeowners struggling to make payments on their home loans REGARDLESS of whether they were delinquent or currently had a notice of default.

Furthermore, this legislation states that any borrower who qualifies and responds to the servicer will be given the opportunity to provide the required information for consideration. If necessary, the scheduling of a foreclosure sale will be suspended.

So, if you’re struggling to make your home mortgage payments, and fear that you’re headed down foreclosure road, get started now!

Loan modifications can take up to 12 weeks to complete in some cases, so the sooner you act, the sooner your payments drop.

President Obama has recently released an incentive for banks willing to help homeowners in need but not delinquent. This means that many homeowners will be able to obtain a loan modification even if they’re not late on their payments.

The real world scenario on that, however, is that many banks are still not complying, and even when they do, they are being very sparse on the amount that they will modify a payment.

Going late on your mortgage to obtain a loan modification is never recommended (or it shouldn’t be at least), but often times borrowers that are the most likely to default (i.e. those that are late already) get the attention of the banks more readily.

With that said, most times there are stipulations that go along with a  loan modification that prohibit a refinance afterward for a period of 24 months. So, as long as you wait 2 years after your loan modification, there is nothing stopping you from refinancing.

As always, please check your loan modification documents, however, because not all loan modifications are created equal and sometimes the period before a refinance is extended to 5 years, and other times it’s not there at all.

As always, it is dependent upon many variables including, but not limited to:

• How recently you filed for a chapter 7 bankruptcy
• How you took your house into homestead
• Your financial status at this time
• etc.

Because this issue has so many variables, it is best to contact us directly and talk about your situation specifically. You can use the quick application to the right, or the contact us form.

A loan modification is simply the change of terms to an original loan agreement. Typically, a loan modification is done for a homeowner that is in financial distress as a means to help the home owner keep the home and avoid foreclosure.

A  loan modification can be anything from simply fixing an adjustable interest rate, lowering a principal balance, lowering an interest rate, or any combination of the former.

Loan Modification is arguably the most effective tool that can be used by homeowners in midst of financial hardship to prevent their homes from entering foreclosure. Loan modification Agreements come in different forms but quite frequently they involve the reduction of mortgage’s interest rate for a specified period of time so he/she can continue to make payments and stay in the home. Beware Paying too much for a loan modification is detrimental to your pocketbook. Loan modification is the most cost effective and timely manner to help the millions of defaulting homeowners get back on track. Loan Modification is a HUD approved workout solution becoming more common during this foreclosure crisis. Loan Modification is a procedure in which a loan’s terms, like the interest rate, the monthly payment or the term, are changed to meet the current situation of the homeowner. Loan modifications are the best solution for you and your lender.

Loan

Loan Modification Specialists (LMS) will be responsible for initiating the sales cycle by qualifying potential clients and then analyzing and determining their specific needs. Loans currently insured by MGIC may be eligible for an MGIC Loan Modification depending on the details of the transaction.

Lender

Lenders and servicers are very busy with desperate homeowners trying to save their homes from foreclosure. Lenders have financial incentive to actively pursue a home loan modification or short sale. Lenders are not in the business of foreclosing on homes; rather, a mortgage company will analyze the home owner’s situation and if it is possible for the borrower to continue making payments (which is composes of both the principal owed against the home and the interest payments to the mortgage company), the lender will find a solution to help the home owner continue making principal and interest payments. Lenders will give you the run around, throw confusing “industry terms” at you, refuse to negotiate, or negotiate terms in their best interest. Lenders want to give as little as possible, distressed to borrowers that don’t know how to get the best deal, or what the best possible deal can be. Lenders are starting to prefer LM over a short sale. Lenders “say they’re doing all these things, they’re trying all these modifications,” said John Taylor, chief executive of the National Community Reinvestment Coalition. Lenders look at loan modifications on a case-by-case basis.

Payment

Payment shock after interest rate resets on subprime adjustable mortgages, many made to high-risk borrowers, has propelled owners into foreclosure. Loan modification team helps Americans retain their homeownership by renegotiate their mortgage with affordable monthly payments.

Modifications

Modifications often consist of lowering interest rates, fixing interest rates, preventing ARMs from adjusting, lowering your principal balance and/or lengthening your term. Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance. Modifications must be handled by a special group who are more highly trained and better-paid, and the increased cost of expanding their number cuts into the bottom line. Recent state legislation and Congressional initiatives require mortgage lenders to make possible every effort to provide loan modifications to homeowners risking foreclosure. In the past, mortgage note modifications were nearly impossible, but now lender are modifying by the thousands. The new FDIC and Treasury program would provide incentives to lenders and mortgage servicers to offer long term affordable loan modifications.

Borrowers

Borrowers with good credit are now deciding it is better for their own personal situation and balance sheet to walk-away from the hundreds of thousands of dollars in debt they owe on their home and opt to rent instead. Borrowers coast to coast have been benefitting from reduced interest rates that were renegotiated in the note modification. All lenders ask for the same general information from their borrowers which they then review to determine if the homeowner will qualify for a loan modification. Fannie Mae, Freddie Mac and HUD offer loan modifications to loan servicers and borrowers as a tool in the area of default management. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan. Although certainly not streamlined or mainstream loan modifications are generally available to all borrowers in trouble.

Short-Sale

Short-sale or forbearance are not good options because they have negative tax and credit history consequences associated with them. Short Sales may not always be the answer. If you have incurred a short term financial hardship and your loan is 90 days to 365 days past due, the loss mitigation specialist will also consider submitting a request for a special forbearance.

Conclusion

Loan modifications used to be reserved for borrowers whose mortgages became delinquent because of job losses, divorce proceedings, or illness, but today they are also open to those individuals who are suffering in the aftermath of adjustable rate mortgages skyrocketing and placing the monthly payment beyond the means of the borrower. Loan Modification is the #1 way to Stop or Prevent foreclosure & Stop Foreclosure and Rising Payments. Are you behind on your payments. Are you losing your family’s home Is your lender refusing your payment. Are you worried about your credit Loan modification is a term very unfamiliar to homeowners but not for very long. Loan Modification Requirements sounds intimidating to the average homeowner but the process is indeed simpler than you might think. Loan Modification- This term has been getting a lot of attention lately and rightfully so. Loan modifications are less of a loss to lenders than foreclosure. Consult a reputable group to navigate you through the process. Be leery of anyone who wants any money upfront. Make sure you exercise your rights & fight hard to stay in your homes.

For many people, returning to those days feels like a pipe dream. Rest assured, it is NOT.

Today, many banks are working with borrowers to help modify their home loans and make their homes more affordable.

Don’t let the opportunity pass you by. You and your family deserve the right to keep your home and lifestyle.

Act NOW! Fill out the questionnaire to the left and we will contact you ASAP.

Maybe paying your mortgage is just becoming increasingly more difficult and you fear that some time soon you won’t be able to afford your home anymore.

Don’t let it get any further! We can probably help you!

To see if you qualify, simply fill out the information to the left and one of our qualified loan modification specialists will follow up with you ASAP.