Loan modification is when you and your existing lender agree to permanently change the terms of your original note. A loan modification is more than just foreclosure prevention. A successful modification is affordable and permanent.
Why would the banks want to renegotiate?
The banks would rather change the terms of the loan to a payment that you can afford than take the property through foreclosure. This will allow them to keep the loan on their books at full value rather than being forced to mark it down according to current mark-to-market accounting rules.
Do I qualify for a loan modification?
There are many factors that determine on what basis a lender will modify a loan. Equity, income, payment history, debt ratio and many other factors. An experienced loss mitigation consultant can guide you as to the best approach to take. Every case is different. If you are employed and can prove your income and if your current payment or future payment is unaffordable, then you probably qualify.
What does it cost?
Fees vary among loss mitigation companies but are generally equal to about one mortgage payment.
Can I do it myself?
You can negotiate on your own but you are more likely to get a better deal if you have a professional negotiator on your side. The bank is unlikely to offer you the best possible deal. Professional loss mitigators have existing relationships with most lenders and know how to get to the decision makers.
Who is Leadsnet Inc.?
Leadsnet Inc is a privately held leads provider. We provide the information that you submit to loan modification companies, mortgage companies, attorneys and consultants. Your personal details will be made available to a maximum of three companies. We don’t sell your information to marketing companies or third parties for any reason other than the free consultation that you are registering for. We are not affiliated with any government agency.