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