Homeowners have a lot of questions about loan modification programs and are confused about the guidelines for approval, how to prepare their forms and most importantly, how to get approved for a loan workout.  Here are some of the most frequently asked questions and the answers that will help explain the process.

LOAN MODIFICATION FAQ’s:

1. Which program do I qualify for?  Depending on your specific situation, you may be eligible for either the government plan called HAMP or one of your lender’s in-house programs.  HAMP has standard guidelines and a standard method of modifying loans, and generally speaking it is the most beneficial to homeowners.  You should always ask to be reviewed for HAMP before accepting any other loan workout program.
2. How do I know if I qualify for HAMP?  The good part about this plan is
   

   Federal Plan

   that there is a standard formula for determining which borrowers will qualify.  This formula is published and is used by all lenders participating in the program.  If your application proves that you fit into this formula, then there is a very good chance you will be approved.  You can actually use a loan mod software program that mimics this very same formula to help you prepare your application correctly.

3. What will my new modified payment be?  Under HAMP, your new payment is designed to represent just 31% of your gross monthly income.  But even better, that payment will include principal, interest, taxes and insurance.  That should be a very affordable figure for you, and you could have an interest rate as low as 2% for up to 40 years.
   

   Easy to Use-Avoid Mistakes!

   The Loan Mod Quick APP software program will show you exactly what your new modified payment could be.

4. Do I have to be late on my payments to qualify?  HAMP guidelines allow for borrowers who are not yet late, but who are at imminent risk of default to qualify.  This means that if you do not get help soon, you will fall behind on your payments.  The calculation for imminent risk of default is included in the Loan Mod Quick APP software program.
5. What is an acceptable financial hardship situation?  Loss of income, reduction in income, increased expenses and using reserves (savings) to pay your bills are some of the reasons.  Divorce, military deployment, illness and many other circumstances can be reasons for needing a loan modification.  You need to write a good letter explaining briefly what has happened in your life to gain your lenders cooperation.
6. How long does it take to get an answer?  Once you submit your properly completed loan modification application and included everything your lender asks for (paychecks, bank statements, etc) then ideally it should take between 30 and 60 days.  Long delays are common because homeowners do not know how to prepare their application correctly – it is critical to prove in black and white that you fit right into the guidelines if you hope to get your loan mod approved quickly.
7. What’s the best way to get started?  The very first thing you should do is spend a couple of hours learning the basics of the loan modification approval guidelines.  It does not make sense to just slap your application together without knowing what your lender needs to see on your financial statement in order to approve you.  Once you have your application fine tuned and know it is passing all the guidelines, then submit it with confidence.

Download immediately!

Susan Gregory is the author of two resource books for homeowners and real estate professionals, the best selling The Complete   Loan Modification Guide Kit & Software and The Stimulus Book-HAMP & HAFA Edition.  She also teaches workshop training classes for the federal programs to help real estate professionals assist homeowners with home retention and exit strategies.  The Complete Loan Modification Guide kit provides a valuable resource for borrowers that includes a step by step handbook, required forms, and a loan modification software program that mimics the federal approval triggers for loan modification.  An advocate for homeowners, Susan also offers free 30 day email support for all of her clients who purchase her publications.  Thousands of homeowners have been helped using these materials.  Visit http://www.myloanmodficationcenter.com for more information.

Wondering if you might qualify for a loan modification program with your lender to lower your monthly mortgage payment?  Statistics show that 60% of homeowners who apply will qualify for a loan modification program-but what about the other 40%?  Why are some borrowers approved but others are declined?  Learn how to pre-qualify yourself so you have a better chance of success with your lender.

While each bank has their own criteria for approval, there are certain requirements that all banks are looking for.  Here is what a qualified loan modification candidate must do:

1. 1.  Provide evidence of a financial hardship making the current mortgage payment unaffordable-this means you write a convincing and compelling letter describing your circumstances so your lender will get a good idea of your situation.  However, you must also show them that you have taken steps to remedy the situation and have made a commitment to sustained home ownership.  You can get help to write your own acceptable letter when you follow the Hardship Letter Outline and template provided in The Complete Loan Modification Guide.
2. Prove to your lender in black and white that while you cannot afford the current mortgage payment, you will be able to pay the new lower modified mortgage payment if approved for a loan modification program.  You will need to complete financial statements detailing your income and assets and demonstrate your revised budget to convince the bank that you will not be at risk for re-default.  The Complete Loan Modification Guide makes this easy to do by providing you with a Current and a Proposed Financial statement along with detailed instructions on how to complete them properly.
3. Submit a complete, accurate and acceptable loan modification application that includes everything the lender will need to see in order to consider approving your proposal.  Incomplete, missing or inaccurate packages will be set aside and the response will be delayed or can result in a denial.  How can you make sure that you have submitted everything necessary and that you have completed it all properly?  Simple, follow the handy Document Checklist and stacking order you get when you order and download The Complete Loan Modification Guide.

There are millions of deserving homeowners who need help with one of the many loan modification programs available, but unfortunately not everyone will be approved.  Make sure you take the time to learn and prepare before you contact your lender to apply for loan modification help.  Remember, the paperwork and information you provide will in large part determine your eligibility-make sure you give yourself the best chance for success.  When you family’s home is on the line-your time and effort are worth it!

You can get the help you need get pre-qualified and to understand the loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Good news finally for desperate and frustrated borrowers stuck with unaffordable mortgage payments and uncooperative lenders.  Fannie Mae has announced their Streamlined Modification Program (SMP) is now available to Fannie Mae servicers and borrowers as an option to prevent foreclosure and keep borrowers in their homes.  This streamlined loan modification process is intended to help set standards in the mortgage servicing industry and be a model for other lenders who are designing and implementing loan modification programs.

Fannie Mae has been working with 27 lenders and servicers in the HOPE NOW alliance to implement this streamlined loan modification program.  Under the program, eligible borrowers would be given a loan modification that reduces their monthly mortgage payment for a three month trial period.  If the borrower makes those payments in a timely manner for three months, then the modification will become permanent.   The program is projected to help 10,000 borrowers get back on track each month.

The streamlined loan modification program will reduce the borrowers monthly mortgage payment, including taxes and insurance to an amount equal to 38% of the borrowers gross monthly income.  The changes to the loan terms may include:

1. Adding any accrued interest, escrow advances and costs to the principal balance
2. Extending the loan term
3. Reducing the interest rate in increments of .125%, to as low as 3%.  If the new rate is set below the market interest rate, it will step up in annual increments after 5 years.
4. Forbearance of a portion of the principal, which will deferred to a balloon payment due when the loan matures, is paid off, or is refinanced.

There are certain eligibility criteria which must be met to qualify for this streamlined loan modification program:

1. Conforming conventional and jumbo conforming mortgage loans originated on or before January 1, 2008
2. Borrowers not currently in bankruptcy
3. Only one-unit, owner-occupied, primary residences
4. Current mark-to-market loan-to-value rati of 90% or more

Homeowners will be receiving solicitation letters and it is critical that borrowers respond to these letters to determine if they are eligible for this loan modification program.  Homeowners who do not receive a letter can contact their lender or servicer to inquire about applying for the program.  It is very important for interested homeowners to understand who qualifies, how to complete their loan modification application paperwork properly, and how to submit their proposal so they have the best chance for loan modification approval.

You can get the help you need to understand this loan modification program by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Which homeowners qualify for loan modification programs and how can you improve your chances of success?  While each lender has their own unique guidelines for acceptance, there are some general requirements that borrowers must meet if they hope to get their loan modified to a new, lower monthly payment.  Knowing this information ahead of time will help borrowers submit their application properly and increase their chances of getting the help they need and deserve.

Really, the bank wants to know one thing-Can the borrower afford to pay and sustain the new lower loan payment if granted one of the loan modification programs.  Unfortunately, a large percentage of homeowners who have already received loan modification assistance have re-defaulted.  This may due to the fact that desperate homeowners accepted terms that were not actually beneficial, or perhaps were victims of the declining economy.  The long term goal of these loan modification programs is to provide an affordable and sustainable payment that will keep the borrower in the home and avert foreclosure.

Before applying for help with one of your lenders loan modification programs, make sure that you have a clear understanding of what their requirements are.  It is pretty hard to qualify for something if you do not even know what the qualifications are.  This is important because the lender will ask for financial statements that detail income and expenses, so these must be completed properly.  Many lenders like to see a small amount of disposable income left over at the end of the month after the new modified payment has been calculated, as assurance there will not be a re-default.  Usually $200-$300 will suffice.

Another important factor in qualifying for loan modification programs is called debt ratio.  Debt ratio is calculated using the total monthly housing expenses divided by the gross monthly income.  Most lenders are targeting the new modified loan payment to be somewhere between 34%-45% of the gross monthly income.  Homeowners are advised to sit down and really determine what an affordable home loan payment would be and find out if that is attainable through a combination of interest rate reduction, longer loan term or even principal forbearance.  Then plan the family budget accordingly so that with the new payment you will meet the lenders guidelines.

Getting help with loan modification programs will take some research and learning about how the process works, but it can be done.  Remember the 3 “P”s-Preparedness, Persistence and Patience.  Prepare by learning as much as possible before contacting the bank.  Learn the guidelines and prepare you application accordingly.  Be persistent, lenders do not easily grant loan modifications and can offer resistance.  Homeowners don’t give up-even if told no the first time-call back and speak with someone else.  This is your home and security-it is worth the effort.  Finally, patience is what will keep you going.  The loan modification process can take up to 180 days, so make a commitment to hang in there until the goal is reached.

You can get the help you need to understand loan modification programs by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender.

 Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

 For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Are you wondering about the loan modification programs available and unsure if you will qualify?  Each lender has its own set of guidelines in place to determine which borrowers will qualify for loan modification help.  Also, each homeowners situation is unique and so every loan modification application will be reviewed individually. The lender will then determine if the borrower will meet the requirements for the loan modification programs.  There are some general guidelines however that every lender follows.  You can increase your chance of success if you know this information before you submit your loan modification application so that you can complete the paperwork properly.  Here are some of the general guidelines:

• Principle residences only- most loan modification programs require that the borrower live in the home-no investment or vacant homes
• Borrowers cannot be in bankruptcy
• Homeowners must demonstrate a financial hardship-can be temporary or permanent
• Financial statements submitted by borrower need to show all income and expenses, and show the lender that they will have approximately $250-300 disposable income left over once the loan has been modified to the lower payment
• Borrower must provide proof of income and assets to meet debt ratio requirements for new modified payment-usually 31-45% is the target ratio
• Homeowners with untapped assets-cash, savings, investments, may not be deemed in a hardship situation and therefore not qualifed for loan modification programs

Troubled homeowners seeking assistance should first contact their own lender to ask them what the banks requirements for loan modification programs are.  If the lender has a loan modification application package, request one be sent to you.  Once you have the advance information on what it takes to qualify, you will be able to complete the required loan modification forms properly and increase your chance for success.  Take the time to research, learn and prepare-thousands of homeowners have already gotten loan modification help and you can too!

You can get the help you need to understand loan modification programs by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender.

Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Troubled homeowners seeking loan modification help may be wondering if it is wise to pay an upfront fee to a loan modification company.  With over 2 million homeowners needing loan modification help, thousands of companies have begun offering to represent borrowers to negotiate a loan modification with their lender for an upfront fee.  Interested homeowners are told that they will have a much better chance of success if they retain a professional service instead of working directly with their lender to find a loan workout solution.  Whether that is true or not, before paying a large sum to anyone for a service, it is simply wise to do some research and know the facts.

Very few loan modification companies offer any type of guarantee that would provide for a refund of any money paid upfront by the borrower.  It is virtually impossible to guarantee results as each situation is unique and each lenders programs and guidelines are different.  The few that do offer a guarantee word it so that it is very vague and virtually unenforceable.  So, what precautions can a desperate homeowner take to ensure that their hard earned money is going to have the best result when attempting to get loan modification help?

Currently, there is very little oversight or regulation for loan modification companies.  However, some states do require that the company be licensed by the Department of Real Estate or some other agency.  Currently 17 states have some type of provision in place to govern the industry.  Before deciding to retain a company for loan modification help, a homeowner should check with local agencies about their state requirements to make sure the company they hire is in compliance.  There is free counseling and advice available through HUD.gov.

Regulations regarding charging upfront fees to borrowers seeking loan modification help vary from state to state as well.  Some states, like California, do not allow any fees to be charged to a homeowner once a Notice of Default has been filed.  Loan modification companies in California must also be licensed and have an approved upfront fee agreement before they can legally charge a homeowner fees for loan modification help.  Again, homeowners should be sure to inquire about any companies licensing and compliance with local regulations before agreeing to pay any money upfront.

Some loan modification companies are affiliated with an attorney and as such are subject to different regulations.  Attorneys who offer loan modification help to homeowners are allowed to take an upfront retainer fee, and this is almost always non refundable.  An attorney who is focusing his practice on loan modification and is not sharing his caseload with a loan modification company will probably offer the most effective and competent representation for a needy homeowner.  In most states, attorneys are prohibited from “fee splitting” whereby they pay part of the retainer fee to a loan modification company who actually processes the paperwork and deals with the lender.  Again, homeowners need to ask the right questions before committing their money and home security to a loan modification company.

Vulnerable homeowners need to take the time to research, learn and prepare before they decide how best to get loan modification help.  Whether you decide to hire a loan modification company or decide a do it yourself loan modification is best, once you know how the loan modification process works and what your lender needs to see in order to qualify for loan modification help, you will increase your chances for success.  A knowledgeable homeowner is a powerful homeowner-once you decide to take control of your financial future by investing your time to learn about all of your options, you will be on your way to secure home ownership.  Research, learn, prepare-thousands of borrowers have already gotten the loan modification help they needed-you can too!

You can get the loan modification help you need by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Currently almost 2 million struggling homeowners are in need of loan modification help so they can stay in their homes and avoid foreclosure.  The Federal Government is urging all lenders to initiate systematic loan modification programs to homeowners facing unaffordable monthly payments and possible default.  Many banks have already implemented their own programs aimed at over 1.5 million borrowers who are seriously delinquent on the payments.  

Homeowners trying to get the loan modification help are frustrated and confused and wondering how to start the process.  If you are a borrower stuck in an unaffordable mortgage, you should start by learning as much as you can about the loan modification process so you will have a better chance of getting the help you need.  Since not all borrowers will qualify for a loan modification, you can increase your chances by taking the time to learn and prepare before you contact your lender.  You will need knowledge, persistence and patience to successfully modify your home loan.

Your lender will ask you to submit an application to begin the loan modification process.  Probably the most important part of this application are the Financial Statements.  These forms are basically a snapshot of your current financial situation that itemize your assets, income and expenses.  Based on the information you provide, a determination will be made if you qualify for loan modification help.  The tricky part is proving to your lender that while the current mortgage payment is a hardship and unaffordable, you will be able to pay and maintain the new, lower monthly payment.  Here are some tips to help you prove this to your lender:

• Disclose all of your income and debts.  Your lender will be verifying the information and will pull a credit report to compare what you have listed.  They will also review your bank statements for income and expense verification.
• Homeowners who list untapped assets such as savings accounts, investment accounts, etc. may not be deemed to be in a hardship situation.  The bank will expect you to use these funds to pay your mortgage payment.
• To prove that the current mortgage payment is unaffordable, complete a Current Financial Statement showing that it is a financial hardship trying to pay the current loan payment along with all of your other expenses.
• Next, prepare a Proposed Financial Statement, verifying that with a new, lower modified payment you can meet your expenses and have a little left over at the end of the month.  This assures your bank that if granted the loan modification help, you will not be at risk for re-default.
• Have a family budget meeting, agree to cut back on any unnecessary expenses like recreation, club memberships, etc.  The bank wants to know that our have made a diligent effort to get your finances in order and are making sustained home ownership your top priority.  Eliminate any frivolous expenses from your final Proposed Financial Statement.

Loan modification help is available to homeowners who can demonstrate they fit within their lenders guidelines by preparing an acceptable loan modification application.  Take the time to learn, prepare and then submit your application.  Loan Modification is not brain surgery, but even the most deserving homeowner may be denied if their paperwork is not completed properly.

You can get the loan modification help you need by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

 For more information about  loan modification help, please visit us at: http://www.myloanmodificationcenter.com

Sleepless nights and stress filled days-you don’t need to be told how bad the housing and mortgage situation is if you are one of the 1.5 million borrowers facing payment default and foreclosure.  Take a deep breath and read on…loan modification help is available to help stop foreclosure and lower your monthly mortgage payments to an affordable level.  You need unbiased and up to date information so you can make wise decisions, but where do you start?  You can begin here to learn about the loan modification process and how you can qualify for some of the billions of dollars set aside to help homeowners just like you.

Our nations economy is facing unprecendented challenges that require unprecendented action.  The Federal Goverment is ready to throw out a lifeline to the millions of homeowners who cannot afford their current home loan and are out of options.  The combination of declining home values, adjustable interest rate loans, tighter lending standards and a looming recession have created a toxic brew desperately needing a far reaching and meaningful solution.  It is now widely acknowledged that systematic and standardized loan modification help is the most effective measure to stem the avalanche of foreclosures that are preventing economic recovery.  Most lenders are complying with the Federal Governments strongly worded messages to provide immediate loan modification help to as many homeowners as possible.

Keep in mind that with close to 2 million homeowners needing loan modification help, lenders are unprepared to handle the tremendous demand for mortgage relief.  Many banks are hiring more staff and opening counseling centers to better handle the influx of loan modification requests.  Patience and persistence are required if any borrower hopes to be successful in obtaining loan modification help.

The best way to start the loan modification process is to learn as much as possible about how it works, who qualifies and why, what loan modification programs are available, and what to expect throughout the process.  Struggling homeowners need to take the time to do their homework and be prepared to present their situation in the best light to their lender if they hope to get loan modification help.  Unfortunately, not everyone will qualify, but once you learn your lenders programs and guidelines you will have a better chance for approval.

All banks have loan modification guidelines that must be met.  Borrowers must provide financial statements that document their income and expenses, demonstrate a financial hardship, and meet certain debt ratio requirements to qualify.  Having the information upfront, taking the time to prepare your paperwork properly and submitting an acceptable loan modification application will ensure a better chance of success.  Don’t be confused or frustrated, make the decision to take control of your financial future by educating yourself about your options, then start the process to get the loan modification help you need and deserve.  Thousands of homeowners have already gotten a loan modification, you can too!

You can get the help you need to understand the loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about loan modification help, please visit us at: http://www.myloanmodificationcenter.com

Learn how!

It may all be Greek to you, but you can get the loan modification application help you need without paying thousands of dollars.  A loan modification may offer the relief you need from unaffordable home loan payments and offer a solution to help you stay in your home.  Even the Federal government is getting involved to offer inducements to lenders that agressively offer loan modification help to their struggling borrowers.  Slowly but surely the momentum to offer loan modification help is growing as lenders have finally realized it is in their best interest to offer a loan modification and help the homeowner avert foreclosure.

Still, not every homeowner will qualify for a loan modification.  Each lender has guidelines that must be met to qualify for loan modification help.  These guidelines include proving that the borrower has an acceptable debt ratio and hardship situation.  So how do you know if you would qualify for one of these loan modification programs?  What is the best way to get the loan modification application help you need?

Pay a Company?

You could hire a loan modification company to represent you with your lender.  Based on the information you provide, the company will complete the forms and submit the loan modification application to your lender for review.  Depending on how those forms were completed, your lender will decide if you qualify and if so, make a loan modification offer to you.  The offer may include a short term or permanent reduction in your interest rate, a longer loan term or an interest only option for a pre-determined period of time.  Sometimes, there is some negotiating on the final loan modification terms.  An experienced and capable loan modification company can help get you the best terms available in your particular circumstance.  The trick is finding a company that has experience and will work hard for you.  Literally thousands of loan modification companies have sprung up all over the country, with little or no regulation or oversite. 

Another option is to take the time to learn about the loan modification process, what it takes to qualify, then invest your time and energy into preparing your own loan modification application.  It may seem too daunting if you have little or no financial experience, but with some upfront knowledge and preparation you can accomplish the same results as many loan modification companies-one BIG difference-you saved yourself thousands of dollars in fees.  Remember, no one can guarantee you results-but also remember that no one will work as hard to save your home as you will.  After all, you have the most to gain and the most to lose.

So, whether you decide to work on your own or hire a loan modification company, it is imperative to get informed and learn as much as possible about the loan modification process so you will have a good general knowledge, know what to expect and what questions to ask.  Now is not the time to leave your financial future to chance, you can take control of your future with just some time, effort and determination.  Saving your home is worth it!

An excellent source of up to date and unbiased loan modification information, The Complete Loan Modification Guide is a low cost handbook you can order and download right online.  You will be provided with everything you need to prepare a professional and acceptable loan modification application.  You will get all of the required forms along with detailed directions on completing them, help to calculate your debt ratio, assistance to write an effective hardship letter, learn you legal rights, and much more.  Get the loan modification application help you need in one easy to follow, step by step guide. 

 Order and download The Complete Loan Modification Guide now and get started on the path to secure home ownership again.

For more information about loan modification application help, visit us at:

http://www.myloanmodificationcenter.com