Loan Modification

Lower Payments

Loan Modification Now

The Loan Modification Act of 2008 was passed by Congress to give homeowners who find themselves in default, foreclosure, or facing other financial difficulties, the means to have their loans reevaluated and rewritten to make them more affordable and easier to repay.

The need for a more updated loan modification program stems from mortgage excesses over the past few years. There were some instances of Mortgage Companies taking advantage of easy money and packaging together exotic mortgages. Some of these mortgages have ballooned or adjusted to higher rates leaving some homeowners facing skyrocketing payments. That, tied together with falling home values, has brought about many changes and legislature to help homeowners in need. With so many homeowners facing bankruptcy and foreclosure, certain members of Congress saw the need to shore up the home loan and housing markets.

There are a number of criteria that must be met before a qualified loan modification or workout plan is implemented.

  • The Loan Modification Act prohibits the causing of a negative amortization of the loan.
  • It prohibits the requiring of the borrower to pay additional points or fees.
  • It must improve the ability of the borrower to avoid foreclosure.
  • The agreement must also provide a regular scheduled payment that is reasonable for that borrower.

If you are under the threat of foreclosure or bankruptcy, you have to understand that it is a very serious matter. It may be a good idea to enlist the help of an attorney who is experienced in loan modification.

Do You Qualify?

You may be an ideal candidate for a Loan Modification if you are:
  • A home owner in financial distress due to; an increase in interest rate or payment on an Adjustable Rate Mortgage. Temporary decrease or loss of income from an unusual event (illness, laid off, emergency, etc.)
  • A home owner who doesn’t qualify for a refinance due to; negative, limited, or no equity in home or is behind on payments.
  • A home owner who was given a fraudulent loan; overstated income, misrepresented occupation, Disclosure Violation, misunderstood terms (Neg Am or ARM vs Fixed) or confusing documents (English vs. Spanish.)
  • A home owner with a sincere desire to keep their home and who can afford a reasonable payment if given a fresh start.
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