Loan Modifications for "almost" everyone!

Loan Modifications for "almost" everyone!

NO appraisal......NO title.......NO escrow.......no kidding! Have your loan recast with the possibility of a lower interest rate and/or principle reduction without all the extra fees and point costs of a refinance. With the current state of the real estate market, lenders are more than willing than ever to work with you if you are behind on mortgage payments or are experiencing financial hardship for many different reasons to adjust the interest rate, lower principle, recast loan amount, give you more manageable payments and/or clear up arrearages. Also unlike a refinance your DTI can be high, there's no employment seasoning, doesn't matter if property has recently been on the MLS or even currently listed, credit scores under 550 exceptable, non traditional income is not a problem, LTV's over 100%, bankruptcy's ok, if the property is already in foreclosure and the NOD has been served its fine, property can be in probate...no problem and all the other things that were typically red flags to lenders do not apply with loan modifications. The main thing the lender will take into consideration is that there is not alot of equity left in the property and their cannot be alot of monthly cash flow available or a huge cash deficit either. Before you foreclose give loan modification a chance. It may give you just the relief you need.

Beverly Shortsale Inc. - Beverly Hills Office
8484 Wilshire Blvd Suite 220 Boulevard
Beverly Hills, CA 91202
P: (310) 598-1399
F: (818) 688-8045

Loan modification hardship letter

Loan modification hardship letter

When getting help to modify your mortgage note you will be asked for certain documents to be used in presenting your case to the lender. One of those documents, and probably the most important, is the hardship letter. This letter basically tells the lender why it is you need them to adjust your mortgage. Its important that it covers all the details but that it remains one page or less. It needs to document all of your current lifes issues so the lender can decide if giving you the loan workout will indeed help the situation and give you the relief you need. Make it unique to your situation and be sure to include all the details of the events. Be sure to include dates and dollar amounts where applicable. An example of hardships that a lender would consider in doing a loan modification or workout are: adjustable rate mortgage reset--payment shock, illness, loss of job, reduced income, failed business, job relocation, death of spouse or co-borrower, incarceration, divorce, marital separation, military duty, medical bills and damage to property (natural & un-natural). This is a list of the most popular reasons that lenders allow loan modifications but other situations will be reviewed for acceptability. Remember, your hardship letter is only one piece of the workout process but is key in getting your loan modification.

Call us today most people that do it themselves end up harming themselves and making the situation worst call and we can help.

Beverly Shortsale Inc. - Beverly Hills Office
8484 Wilshire Blvd Suite 220 Boulevard
Beverly Hills, CA 91202
P: (310) 598-1399
F: (818) 688-8045

Loan Modification Example

Loan Modification Example

Here is an example of a loan modification workout. This was a situation where the home was already in foreclosure. The were in default in the amount of about 19,000 dollars. Their rate had adjusted up to 9.5% which made it difficult for then to make the payments. In this example of a loan modification workout we were able to get the rate down to 5.4% fixed which lowered the payment by 800 dollars a month. The foreclosure was stopped and all back payments owed were added back into the loan amount so the owners did not have to worry about coming up with the 19,000 dollars to catch up. As a matter of fact the only fee they ended up paying was the 500 dollar escrow fee and the cost of the successful loan modification which saved them thousands of dollars a year.

Beverly Shortsale Inc. - Beverly Hills Office
8484 Wilshire Blvd Suite 220 Boulevard
Beverly Hills, CA 91202
P: (310) 598-1399
F: (818) 688-8045

Loan Modification and Bankruptcy

Loan Modification and Bankruptcy

The effects of a bankruptcy on your client’s credit report can be devastating. The average decrease in FICO score from a bankruptcy that your clients can expect is 100 points. Your clients should have their credit pulled immediately after a bankruptcy to verify the accuracy of the items that should be reported on their credit report as included in the bankruptcy. This is crucial to rebuilding your client’s credit after a bankruptcy. Typically if a client is in bankruptcy a lender will not do a loan modification at that time. It will be necessary to wait until the bankruptcy has been finished and then there is a much better chance of doing a loan modification. Keep in mind that loan modifications and short sales will still effect the credit score but not to the extent that a foreclosure will. It may be necessary to see a credit repair specialist after the fact when using one of the processes above. One that I refer my clients to is www.expresscreditrepair.org. They are definitely the rolls royce of the credit repair industry and are very good at getting your fico score raised quickly.

Loan Modifications Made Simple

Loan Modifications Made Simple

It has been said that 99% of all “A” type lenders and roughly 70% of sub-prime lenders will negotiate a loan modification where most of the arrearages and pre-foreclosure fees are either wiped out or rolled into the new recast loan amount. Payments can remain approximately the same or in alot of cases (especially where the rate is drastically lowered) will be quite a bit less. In most cases the interest rate will be reduced permanently. This is important because alot of the time it is the only way the owner will be able to stay in the home long term.

Our job is to convince the current lender that it is better to lower the homeowner’s payment by lowering the interest rate or current loan amount by creating a payment plan the borrower can afford, than it would be to take the home back thru a foreclosure and lose money on the resale. Keep in mind that lenders typically lose money on bank owned properties as they will sell for less than market value, and a commission must be paid to a Realtor, plus closing costs and the cost ofholding the property while they wait for a sale in a market that is depreciating.

Loan modification service companies must prove to the lender the maximum payment a borrower can afford by constructing a financial plan for the homeowner for approval. Also as the homeowner is often late with their payments and in foreclosure or soon to be in foreclosure, we need to ask the lender to forgive the delinquent payments or put them on the back of the loan. Contact us today to do a free analysis.

Beverly Shortsale Inc. - Beverly Hills Office
8484 Wilshire Blvd Suite 220 Boulevard
Beverly Hills, CA 91202
P: (310) 598-1399
F: (818) 688-8045