Loan Modification FAQs

What is a Loan Modification?
A loan modification is a change in your mortgage terms to bring your monthly payment down. Due to the current financial crisis almost every bank WANTS to modify your loan to keep you in your house making payments.

Who qualifies for a loan modification?
Anybody facing a hardship qualifies for a loan modification. This can be many things such as: job loss, loan payment increase, decrease in income, divorce, medical expenses, etc.

What is the cost?
The cost of a loan modification usually varies somewhat depending on your unique situation. In general it is not much more (and many times much less) than the cost of a single mortgage payment.

What if my credit is bad?
A loan modification has absolutely nothing to do with your credit. A loan modification can actually SAVE your credit because you will not be faced with foreclosure or anything else that will negatively affect your credit score. A loan modification DOES NOT negatively affect your credit.

What if I have no equity or I am upside on my home?
It doesn't matter. In some instances you may even receive a principle balance reduction which will bring your loan amount to the current market value of the home.

Does every bank do loan modifications?
Almost all banks will do a loan modification. The bank does not want to take your home. They would rather you continue paying something even if it is less than what was originally agreed upon.

Does it matter what state the home is in?
No. While each state does have a few unique procedures, we are able to modify loans in any state.

How long does the process take?
It usually takes around 30-60 days for us to complete a loan modification.