Ron Sadaka has been a prominent facilitator in the south Florida real estate and finance markets for over 20 years. With nearly a billion dollars in transactions, Ron has a solid record of success in residential, commercial and investment real estate purchases, sales, financing and advisory services. Ron is a licensed mortgage broker, real estate broker and a leading provider of custom financing programs tailored for self-employed professionals and business owners. Ron specializes in investment and income-producing properties. He provides expert investment analyses and transaction underwriting for real estate investors and lenders throughout the US.

The company provides highly successful loan tailoring and modification services as well.

Many struggling homeowners could qualify for a mortgage loan modification and not even know it. The reason is because despite the fact that a loan modification will, in the long term, help both borrowers and banks, banks still lose money on their original loans. Obviously, lenders will do all they can to hold their borrowers to the original terms of the mortgage. There comes a time, however, when it’s clear that default and then foreclosure are imminent. It might become evident at some time that default and foreclosure cannot be avoided. When this time comes it is time to apply for a loan modification.

Download and print out a free loan modification checklist to help you better your chances of getting qualified.

There are many measures a homeowner can take before foreclosure. When it is clear that your financial situation is getting critical, contacting your bank or getting on the internet and looking for other loan modification programs is a smart idea. There are now federal programs such as Obama’s Home affordable Program that are designed to keep struggling homeowners in their homes. Finding some help in your attempt to navigate the process can start with programs like this one.

A loan modification takes your existing home loan and makes modifications to it that will make it possible for you to pay it in a reasonable amount of time. Your payments are lowered by doing such things as reducing the principal you owe so that it is equal to the current value of your house, lowering the interest rate and making it a fixed rate, and/or extending the length of the loan, say from 20 years to 30 years. Missed payments can either be forgiven or rolled back into your mortgage so that you begin repayment your mortgage in good standing.

The process takes a long time and you must meet certain qualifications to be accepted for a loan modification. At first you have to show true financial difficulty. It is more effective if this difficulty comes from issues out of your control. Job loss, a bad mortgage, a death of a paying member or your family, military deployment, divorce and illness are all examples of hardships that are beyond your control. While deep credit card debt can also be a hardship, unless you can show that you were using the credit cards as a means to eat and pay bills, this might actually harm you. It is a tightrope walk.

You also need to prove to the bank your determination to keeping your home and paying down your new loan. They will want you to develop a payment plan. According to the many loan modification regulations, your new payment can’t exceed 31% of your gross monthly income. This will help you to create a budget that you can live with.

Before you quit and leave your home behind, consider the possibility of a loan modification. A lender would prefer to lose a few thousand dollars on a loan than have a foreclosure property added to their books. The time is right for you to take the chance and work with your lender. Many people will use mortgage loan modifications to remain homeowners in these tough times.