What is a loan modification?
A loan modification is when a borrower is facing great financial hardship and is having difficulty making their mortgage payments. We will then work with your lender to change the terms of your mortgage loan. The workout plan could result in temporary or permanent changes to the mortgage rate, term and monthly payment of the loan. The plan’s goal is to help the borrower reduce their monthly mortgage payments to ease some of the financial hardship. Under Obama’s plan, loan modifications are standardized, with uniform loan modification guidelines used by Fannie and Freddie Mac, and are implemented throughout the entire mortgage industry.
Who is eligible for a loan modification?
You may be eligible if you are facing a financial hardship and are unable to keep up with your mortgage payments. A hardship that caused the financial hardship could be health problems, loss of job, and less worked yours due to the economy. These are just some examples but, you ultimately know what your hardship is and we can work with you and get you pre-approved. We can also work with lenders in mortgage reduction if you are upside down in your mortgage.
Who’s not eligible for a loan modification?
Speculators — or those who bought homes knowing they could not afford the mortgage payment. You must have some sort of hardship!
How does someone get a loan modification?
A loan modification can be done by us Key Real Estate Investors, LLC. We have the resources, skill, knowledge and working relationships with hundreds of lenders. You must honestly state your situation. We will assess it via phone calls and paperwork and determine whether you qualify for a modification and then send out a pre-approval. Keep copies, detailed notes on who you speak with and details of the conversations so you have documentation down the road if you are faced with foreclosure. Also depending on the direness of your financial difficulties, we have a law firm to negotiate your modification.
Why would lenders modify your loan?
This question is plain and simple! It beats foreclosure. If a lender has to foreclose on a property it will take more time and cost more money. The solution is to modify the terms that will allow the mortgage holder to continue to make mortgage payments and prevent foreclosure. It's a win-win situation.
Bottom line:
It is estimated 3 to 4 million homeowners will benefit from this plan, but the plan will not benefit the ones who intentionally put themselves in a position of owing more than what they can afford. I would call it "living beyond your means" or "keeping up with the Jones". This plan is for people who honestly need help!
