Clear Image Financial Group - Mortgage Modification Made Simple

What Is A Mortgage Loan Modification?

A loan modification is a restructured agreement between the borrower and mortgage lender with revised terms and interest rates. Mortgage loan modifications are long-term solutions for borrowers who are considering a foreclosure or bankruptcy. Banks typically agree to modify a mortgage note when they believe the borrower never has a chance repay the current loan with their existing circumstances. Loan modifications are primarily used as a tool to stop a looming foreclosure.

A large number of clients will find themselves using a Loan Modification Plan to stop foreclosure. If you can currently make your regular payment, but you can't catch up with the past-due amount, we will negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance. This new amount will be re-amortized over a new period of time.

Or, if you are unable to make payments at this rate we will negotiate with your lender to extend your loan for a longer period of time, modifying the loan payment to a more affordable level.

In some cases if you are upside down on your mortgage the bank may reduce how much you owe on the mortgage bringing your payments down and also your interest rate to a more affordable term. Most lenders are offering rates between 2% and 7.5% to get your mortgage back on the right track.

A Loan Modification will change your existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately.

How long will it take for me to renegotiate my home mortgage and my second mortgage loan?

In most cases it takes 60 to 90 days. However, 120 days is common with lenders like who are backed up like Washington Mutual, Countrywide, etc. The trend lately has been much quicker with negotiated terms and modifications in 30-45 days. It is important to remember that each loan modification is unique and the time varies based on who your mortgage lender is and what your hardship details consist of.

Are My Creditors going to continue to call me?

One of the first steps with our loan modifications is to contact and notify your servicing lender that we are representing you and demand they cease harassing you. It often takes up to thirty days for your lending company to acknowledge our settlement or loan modification requests.

What if my mortgage company won't approve us for a loan modification?

Now more than ever, mortgage companies and banks understand that if they do not provide revised loan terms or settle for a portion of the debt to be paid that they will more likely than not get any money. Banking institutions are aware of the declining housing market, and they know that at a certain point they have to take what they can get. Most of them will settle very quickly avoiding the cost of foreclosure and recovery actions. In the rare event that a creditor won't settle with our offer they will return with a counter offer that will be favorable to you. There are many options to prevent foreclosure if you act soon enough.