What is a loan modification – This term has been getting a lot of attention
lately and rightfully so. With millions of homeowners stuck in toxic adjustable
rate mortgages and no way to refinance out of them, loan modifications may be
the only way to assist struggling borrowers.
This term is used when your lender modifies your current mortgage (same loan
you have, only changes are made to the note) in order to work with you and
make your mortgage more affordable. A modification to your rate, balance of
loan, delinquent fees owed, term of loan, etc. can be made by the lender.
In the past this was only used when a borrower was delinquent but now we will
see it being used before someone is delinquent. This will be the hottest term
and the best way to help homeowners avoid foreclosure.
A loan modification will change the existing mortgage note and give the
client a fresh new start in managing their home. Accounts will be brought up to
date immediately.
With a loan “modification” you take the mortgage you now have and
change the interest rate and payments requirements in order to achieve a fixed
rate.
Lenders are willing to negotiate when borrowers are facing financial
difficulties and can’t obtain other financing alternatives. New American Funding
shows the lender why it would be in the lender’s best interest to agree to a
workout arrangement. In turn, the lender will reduce the loan interest rate,
reduce monthly payment amounts or change other loan terms to allow for an
affordable loan to allow the homeowner to avoid foreclosure.
New American Funding brings the two parties of problem loan together to
mutually agree to a workout that creates new and better loan terms which are
affordable and realistic. The hope is that the new loan will enable to the
borrower to meet their obligations. And with New American Funding’s detailed
personalized financial analysis, this hope becomes a reality. Our clients accept
the loan that is affordable to them, and never need worry about foreclosure
again.
NEW AMERICAN SAVES HOMEOWNERS FROM FORECLOSURE
Problem:
Martha Luciano had a first and second loan on her home. The
combined loan amounts were more than her home was worth. On top of
that her first loan was adjusting from 6% to 9% and she was faced with
the prospect of foreclosure and losing her home.
Remedy:
We were able to negotiate Martha's loan amounts down with her current
lender and get her into a new 30 year government insured loan with a
6% fixed interest rate. She was able to stay in the home she had lived in
for many years and could now afford the payment.
Listen to the phone conversation with Martha Luciano
Problem:
Mr. Croom was in trouble and facing foreclosure due to a decrease in
his home's value and a risky short term adjustable loan. His loan had
already adjusted to a whopping 9% with another adjustment to 11.6%
on the way. This would have increased his payment to an amount he
could no longer afford on his fixed income.
Remedy:
We were able to negotiate Mr. Croom's First Trust Deed down by
$70,000.00 which then qualified him for a government insured 30 year
fixed loan which reduced his monthly payment by $900.00.
