Resources - FAQ
Important Note
Lenders are changing requirements and results on a daily basis in this current economic market, so it is important that you contact us with your specific situation to get an up-to-date opinion of your potential results. Please use these FAQs as a guideline only, and know that they are definitely subject to change. The FAQs contained herein are subject to individual state laws.
Can I qualify for a loan modification?
Millions of Americans have encountered financial hardships ranging from loss of income and/or employment, divorce, medical disabilities and other difficulties. The individuals who qualify the most are those borrowers who are in most need of immediate assistance. Any homeowner with an adjustable rate mortgage that has adjusted or is about to adjust is also eligible. If you are currently behind in your payments (or will most likely become delinquent in the near future), you may also be eligible for our program. We have also had great success helping homeowners who have previously been turned down for a modification by their lender. Mortgage Assistance offers a free evaluation by one of our attorneys to see if you qualify for the program.
What about President Obama's Foreclosure Bailout Plan? Can't I get assistance from that Plan?
The recent signing of the Obama Foreclosure Bailout Plan and Stimulus Package has left American Homeowners wondering what to do next. It is estimated that only 15% of mortgage holders will qualify, leaving the majority of the population still without a solution. President Obama's Plan only applies to Fannie and Freddie loans and includes many limitations such as residency requirements and loan limits. Anyone with a loan above the conforming loan limit will not qualify under this program. The program is also limited with equity requirements and does not allow homeowners to qualify if they owe more than 105% of their homes' value. With many homeowners upside down on their mortgages, the need for our services is strikingly apparent.
What can I expect from a successful loan modification?
Our goal is to present a carefully prepared package to your lender outlining the hardships you are encountering and why it is critical for your lender to agree to restructure/modify your current mortgage(s). With the huge existing inventory of foreclosures (REOs) in a lender's portfolio, your lender should be willing to listen and analyze our proposal in order to negotiate a successful outcome for both you as a homeowner and the lender. A successful loan modification might include interest rates being reduced for 5 years to between 1.0% - 2.5%, and then 5.5% for the remaining 25-year term, or a straight 30-year loan at 4.0%. This type of modification can amount to thousands and thousands of dollars of savings to a homeowner and the opportunity to avoid the loss of a home. We have also seen successful modifications where substantial arrearages are waived or recapitalized. Additionally, we have seen existing loans modified to new 40 or 50 year terms, and in some cases, second trust deeds reduced or cancelled. Each modification is different, and we cannot guarantee what sort of results you might expect from our service.
What is the cost for a loan modification?
Mortgage Assistance does have a fee for our services. Please contact us to see what we can do for you. We do offer a payment plan catered to your needs, and also occasionally offer "Pro Bono" cases. Most homeowners recapture Mortgage Assistance's fee for the program in a few months. After that, it is clear savings in your pocket for the life of the loan.
Is there a guarantee for your services?
Absolutely! We offer a 100% money-back guarantee in writing for most owner occupied modifications. If we cannot modify your loan, we will reimburse 100% of the fee you paid. We are confident we can help you. We offer a limited guarantee for acceptable investor and/or commercial properties.
What is a Loan Modification?
A loan modification is the process of modifying or re-writing the terms of your existing mortgage so you will have a payment you can afford. A modification has the ability to temporarily or permanently change the terms of your original mortgage loan, in some or all of the following ways:
- reduce your interest rate
- change the rate from an adjustable rate to an affordable fixed rate
- extend the term of your mortgage
- bring delinquent interest, escrow (taxes and insurance), fees and costs current
Why pay Mortgage Assistance to modify my loan?
Yes you can modify your own loan. You can also perform surgery on yourself, but would you? Just like highly specialized surgery, you need an expert to help you through the loan modification process. In many cases your home loan is the largest debt you will ever have. The modification of your loan is a serious and potentially life-changing negotiation. If and when you do reach the appropriate department, the person you will speak with is not on your side! They work for the lender and are trying to keep as much profit as possible in the lender's pocket. The money you will potentially save amounts to thousands and thousands of dollars and unless you know all of the special ins and outs of the loan modification process, you may be doing yourself a disservice. We highly recommend you consult with an expert who will be on your side, getting you the best possible terms.
Will I be making my mortgage payments during the modification process?
While we cannot and would never suggest you not make payments to your lender, the majority of successful loan modifications occur when homeowners have stopped making their payments.
I keep hearing that lenders are offering modifications. Should I deal directly with my lender?
Absolutely not! We continuously hear horror stories about borrowers who try to deal with their lenders directly! To get the best possible modification terms, you need to be able to firmly and specifically negotiate with your lender. There are many hidden roadblocks standing in your way. You do not want to submit a modification proposal to your lender without it being reviewed by an attorney for the best results. You need to present the appropriate data that reflects your hardships and updated financial information. If you call your lender, you are dealing with someone whose job is to get the best settlement for their employer - your lender - not for you! And once your case has been settled and modification documents are sent to you for signature - they need to be reviewed to make sure everything is as agreed, and that no unusual clauses have been added (this happens more often than you would think). Many client-conducted modifications fail miserably. You need someone with experience, and a proven track. Mortgage Assistance can get the job done, quickly and efficiently, with the best possible results.
How long does a loan modification take to complete?
Although each case is different, once you are approved and in our program, most modifications typically take between two and six months.
Can you help me if a Notice of Default or Notice of Trustee's Sale has already been filed against my home?
Unfortunately, the answer is no. We are not foreclosure consultants. We can, however, refer you to an attorney or law firm in your area who may be able to assist you further.
Where can I find more information about foreclosure laws in my particular state?
A great source of information on individual state foreclosure laws can be found at www.foreclosurelaw.org
I keep hearing about scam modification companies on the news. How do I know that Mortgage Assistance is not one of them?
By now, we have all become familiar with loan modification scams, deceptive mortgage rescue ads and other foreclosure scams. State Attorney General offices throughout the country have received countless complaints from unwary consumers who have fallen victim to companies who promise to stop foreclosure, guarantee results (such as principal reduction and/or debt forgiveness), or entice homeowners to deed their homes to them as a way of avoiding foreclosure. The truth is that nobody can promise to stop foreclosure. However, there are dedicated professionals who can help advise you of what options are available for your particular situation, and who can help you navigate the process with your lender.
We at Mortgage Assistance pride ourselves in our work and commitment to helping our clients regain their financial footing. We ARE helping people every day. We will NEVER guarantee to save you from foreclosure (we are not foreclosure consultants); We will NEVER ask you to deed your home to us; We will NEVER ask you to stop talking with your lender - we believe it is important to keep communications open with them; We will NEVER ask you to stop making your mortgage payment; We will never guarantee what kind of modification we can achieve for you. Each client has a unique situation and each file gets different results; and We will NEVER promise principal reduction or debt forgiveness.
What we WILL do is work hard to get the best modification that is available to you and we WILL negotiate with your lender to reduce the amount you owe whenever possible.
Mortgage Assistance is extremely proud of the services we provide. And we are happy to show you countless written results we have achieved for our clients. We are an ethical and caring company, dedicated to helping our clients through this historically difficult time.