Loan Modification Options

A loan Modification is the restructuring of your current mortgage terms in order to lower your monthly payment. THREE TYPES OF MODIFICATIONS are Interest Rate Modification, Term Modification, and Principal Balance Reduction
 

INTEREST RATE MODIFICATION:

Is when your lender agrees to lower the interest rate temporarily or permanently. Common rates go as low as 2% for the 1st 5 years, and as low as 4-5% for a permanent rate drop after the 1st 5 years. 

TERM MODIFICATION: 

The extension of the repayment period for your loan. For instance, a borrower 5 years into a 30 year loan, can request a term modification resulting in re-writing the note to a NEW 30 or 40 year term. This type of loan is almost always offered. It can be used in addition to Interest Rate Modifications to maximize the monthly savings for the borrower.

PRINCIPAL BALANCE REDUCTION:

Your lender reduces the Principal amount owed wiping out a portion or all of your negative equity. The fact is that home values (especially in certain geographic regions) have plummeted. This is the lenders least favorite of modifications currently in practice. It is reserved exclusively for second trust deed, and those found with major Real Estate Settlement Procedures Act (RESPA), Truth In Lending Act (TILA), or Home Ownership Equity Protection Act (HOEPA) violations. They are EXTREMLY difficult to negotiate and achieve.

With our Lender Integrated Software - we can determine what options may be available to you and get you pointed in the right direction.

CONTACT US TODAY TO SEE IF YOUR LENDER IS PARTICIPATING IN THIS PROGRAM