Are you having trouble paying your mortgage each month?
Are you already behind on your mortgage payments?
Have you recently experienced a hardship that’s about to make you unable to make your monthly payment?

If you answered yes to any of these questions you may be able to get a break on the amount of your monthly mortgage payment. A loan modification may be the solution to your financial problems.  Here’s how to lower your house payment.

As you most certainly know, the economy is in turmoils right now. The investment world is frought with uncertainty and doubt.  The housing market is a major reason why the economy is in a recession and it’s in much worse shape than the overall economy. So there are millions of homeowners who are struggling to make their mortgage payment and many of those are in serious danger of losing their home to a foreclosure. To help save people from losing their home, and to help save the lenders money, homeowners and lenders can now adjust the monthly payment on a mortgage with a loan modification.

A loan modification will lower your house payment by changing one or more terms of the mortgage agreement. By changing the terms the monthly payment will become more affordable. This will allow you to make your mortgage payment each month and it will also allow the lender to still get their money.

There are certain conditions that have to be met in order to qualify for a loan modification. Part of the conditions are that you have to have a hardship that caused or is causing your inability to make your monthly payments and you have to show proof that you will be able to make your monthly house payment once the loan modification takes effect.

Some example of hardships include your loan adjusting to a higher rate so that you can’t make your payment, you or your spouse getting laid off or fired, you or your spouse becoming disabled, or a you and your spouse divorcing. These are just a few examples of possible hardships.

A loan modification may be the perfect way for you to lower your house payment. If you qualify for a loan modification then you and your lender can change one or more of the lending terms and that will lower the monthly mortgage payment. This will help keep you in your home and it will also allow the lender to still be paid back. Therefore, a loan modification is a win-win for everyone involved.

Peter is a leadding authority on the topic of loan modification. His firm The Loan Modification Network connects homeowners with a nationally recognized group of attorneys licensed in all fifty states to assist homeowners in forclosure preventioan strategies and loan modifications. Call 800-437-2185 or go to http://www.us-loan-modification.com to learn more.

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This article was written to give a brief overview of how the loan modification process is handled when the home owner is dealing directly with their lender.  Before I begin I have to let you know that I am not trying to persuade or scare you from doing a loan modification on your own, but instead I am trying to give you real information, so stay with me.  Before you attempt a loan modification it is important to know what you will be getting yourself in, as most lenders only give the home owner one shot at this per year.

It will normally begin with several phone calls to the lender or servicer in which the phone call will be answered by an automated system which will provide a list of menu options, and not to mention prolonged hold times for up to 60 minutes depending on call volume and the hold music will sometimes put you to sleep and if you are lucky after waiting 30, 40 minutes your call wont drop and you may have to start all over again.  Some home owners describe this as modern day torture.

 Once you finally reach a live person and you give them you loan number and other identifying information, don’t be surprised if they have to transfer you to another department 3 or 4 times in which you will have to give all you information over and over again to every representative you speak to.  To save you time and frustration you will need to speak to the loss mitigation department, this is the only department that can and will handle loan modifications, so don’t waste your time with customer service, some of the customer service reps have no clue as to what a loan modification even means.

 Once you do get a hold of someone that is knowledgeable, you will want to get their full name, direct number and or extension, this way in the future you can get around the long hold times. 

 To save you frustration and from getting a full head of gray hair, believe me this process have been known to do worst, you can hire a loan modification expert.  A loan modification expert is able to devote their complete attention and skills to getting you a beneficial loan modification.  There are hundreds of loan modification strategies that a loan modification professional will use, depending on the home owners individual situation.  Most loan modification will result in any of the following:  reducing the interest rate, converting the adjustable rate to a fixed rate loan, forgiving default payment, or a combination of any of the above.  Principal reductions are definitely a possibility but it is very rare, if you consult with a loan modification company and they guarantee principal reductions you should run and not walk away.

Lenders are more willing to grant just an interest rate reduction, because if done properly will keep the home owner paying their monthly payments and they can avoid a short sale or foreclosure, as short sale and foreclosures are very costly options for the lender.

Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized

in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with

other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy

or to get instant access to the remainder of this Insider Mortgage Report, please visit

http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796

Article Source:http://www.articlesbase.com/mortgage-articles/the-loan-modification-process-what-you-need-to-know-784091.html

The loan modification process is actually a very multifaceted process.  What I mean by that is, the entity that actually makes the decisions on loan modifications are not always made by the company that owns the loan.  Instead it’s actually the investors who own the mortgage back security that you loan is a part of that make the decisions as to whether or not to approve your loan modification. 

 The decisions are based on this factor, what is most “beneficial” – which mean how can they keep more money in their pockets and minimize their losses.  This is why the typically result of a loan modification is just a rate reduction and they would prefer to keep you paying than going into foreclosure or committing to a short sale.

 Even though the borrower’s circumstances make an impact on their decision, the lender really doesn’t care what a foreclosure will do to the borrower’s credit.  This is exactly why it is recommended to use a loan modification expert to structure your loan modification and present a strong case to your lender.

If the home owner is upside down and has negative equity, then this will actually increase their chances for getting their loan modification approved, as the amount of equity or lack of is a crucial factor in determining if a loan modification is appropriate for the home owner.  For a home owner to determine their equity position, they will need to get an idea of what homes are selling for in their neighborhood.  They can do this by either contacting a real estate agent or using websites such as www.zillow.com, where the home owner can input their address and this site will show recent sales and active listings in the surrounding areas.

 Adjustable rate mortgages coupled with other life events are almost a guaranteed loan modification, especially if the rate adjusted and caused the home owner to default.  Adjustable rate mortgage are considered an extreme hardship and becomes a major factor when getting a loan modification approved. 

 If done correctly, a loan modification can prove to be a win-win situation for both home owner and lender.  Many lenders have turned to loan modification as a means to protect their real estate investments.

 It is not uncommon in today’s market for the servicer to string along the home owner and tell them every thing is ok, when its not, before the home owner knows it, the sheriff is knocking on their door, serving them with a lis pendens that shows that their lender has filed a lawsuit and has started the foreclosure process.  That is why I want to encourage home owners that are not educated enough to deal with this process to hire a professional loan modification company to assist them during these stressful times to ensure a smooth and quick loan modification.

Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized

in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with

other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy

or to get instant access to the remainder of this Insider Mortgage Report, please visit

http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796

Article Source:http://www.articlesbase.com/mortgage-articles/a-behind-the-scenes-look-on-loan-modifications-784144.html

A loan modification is something you may apply for if you are facing foreclosure. It is a change in the terms of a loan, usually the interest rate, payment or term; making the payment more affordable for you and helping avoid foreclosure. There are certain steps you need to take and things to consider before applying for a loan modification.  Read on to learn more about how loan modification can help stop foreclosure.

First keep in mind the goal of a loan modification is to make it easier for you to make your mortgage payments, keeping you out of foreclosure.  Many bank lenders will be happy to look into loan modification options for you, since they want to avoid foreclosure, just as much as you do.  But getting a loan modification, can be a process and there are certain things you need to watch out for and to protect yourself from scammers.

Unfortunately there are people out there that want to take advantage of you in your time of need and may try to scam money out of you.  These people are using the good intentions of your loan modification for their own personal gains.  Make sure you do your research before you work with a loan modification company.  Look online for reviews about them, make sure previous clients have been satisfied with them and they don’t have any negative comments to say. Or at least make sure they have more good reviews than bad. Not everyone can be helped in these situations and sometimes people may be upset because they couldn’t save their home. It’s not uncommon for these people to give bad reviews, even when they may have been given a refund for any money they spent. Most reputable companies have an refund policy when they are not successful, but make sure they will stand behind their guarantee.

There are certain key things you can look for to tell if a company may be fraudulent.  First off fraudulent foreclosure help organizations will usually promise to take care of all your problems with your lender and obtain refinancing for you.  They may even ask you to make mortgage payments directly to them.  This will likely be money you will never see again and probably isn’t going toward your mortgage pay off. When someone asks you to start making your mortgage payments to them, run away as fast as possible!

Some “help” organizations may even ask you for the property deed, saying that if you make the payments to them, you can stay in your home.  What usually happens is that the scammer takes all the money and sometimes they will even file a bankruptcy case in your name.  This is because bankruptcy filing can stop a home foreclosure, usually for just a temporary period of time though.

If a scammer files a bankruptcy in your name and you do not participate in the case, the judge will dismiss it and the foreclosure proceedings will continue.  This is one of the worse case scenarios because you will loose all the money you gave to the con artist and you will have bankruptcy on your credit records.

Another thing to watch out for is loan modification companies that say they are attorney based or backed.  A loan modifciation attorney should be the one doing a loan modification and being backed by one is usually just a play on words and doesn’t mean a thing.  So if a company says we have attorneys that back us, that may mean nothing at all.  Maybe the guy that works there has a friend as attorney for all you know.  This is why it is important to do some digging on your own before working with a company or handing them over any money. Usually when you ask to know who the attorney is, or ask for professional credentials, they will have some excuse not to give you names or license numbers.

You should always work with a loan modification company that have a refund policy, either a partial or full amount will be returned to you, if they don’t do what they promise.  Make sure if a company tells you this, you get it in writing and keep the documentation.  Also never sign any papers that they send, unless you understand every single word on them. One company we refer people to even offers a refund where they will pay you an additional amount if they don’t get the new payment they promised! This is one of the best gurantees we’ve seen.

Your ultimate goal is to save your home, so do the research and talk to the right people.  A loan modification company or attorney may be a good first step.  Most of them provide a free consolation, to start with.  Most attorneys, although expensive, will be legitimate and can provide you will a good service.  Never hesitate to ask questions though if you have concerns and walk away if something feels just not right with a company, it could just save your home.

LJ Adama writes articles on financial advice and foreclosure help. To get better ideas on how to stop foreclosure. Or to learn about loan modification and foreclosure prevention methods please visit us at ForeclosureFish.com

Article Source:http://www.articlesbase.com/mortgage-articles/-foreclosure-and-loan-modification-what-you-need-to-know-812761.html