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What is Loan Modification?

Loan Modification is the negotiated process that modifies the terms of an existing mortgage. Once the negotiation is complete both lender and homeowner are bound by the new terms.

What kinds of changes can be negotiated?

Here is a list of the basics changes that can typically be negotiated:

• Lowering the interest rate
• Reducing the principal balance
• Changing an adjustable interest rates to a fixed interest rate
• Increasing the number of years in the loan term
• Forgiveness of payment defaults
• Forgiveness of fees or penalties
• Any combination of these

What are the Benefits of Loan Modifications?

Loan modification arrangements prevent foreclosures and restructure a loan so payments are less and the homeowner has a financially sustanable way to keep his home. The Homeowner remains the homeowner. Lenders do not incur expenses for foreclosure and are reassured that payments will be made in a timely fashion.

Do I need a negotiator?

Technically you do not.

The ADVANTAGE of using a professional Loan Modification Specialist is that their knowledge, experience, and industry connections greatly simplifies the loss mitigation process. This often results in a better profile to submit to your lender, and can greatly increases your chance of receiving the best modification or loan workout possible. A homeowner usually receives a much better loan workout from the lender when represented by someone who knows the ropes and what the lender is looking for.

Using a CURE certified Professional Mortgage Workout Specialist ensures that the professional you’ve hired to represent you to your lender is following strict ethical guidelines and is monitored by a neutral nonprofit watchdog protecting your best interests.

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