What is a loan modification?

If you are behind on your mortgage, underwater (home worth less than what you owe on it) or your rate is so high that reducing it would make you able to pay the mortgage...those are all reasons that you would be eligible for a loan modification, likely through HARP or HAMP. You must contact your lender for your loan to be modified by them or another mortgage broker if you would qualifiy to refinance with HARP.

A lot of folks confuse loan modifications with refinancing.. The mortgage industry has very distinct differences between the two.. a refinance is where you apply for a new mortgage on an existing property.. The old mortgage gets paid off, the lien is released, and a new loan and lien is issued with the new lender.. A loan modification is where your existing mortgage stays in place with your original lender, but they "Modify" the terms.. so if your 8 years into a 30 year mortgage, they might extend the balance out to 35 years, which in turns "Modifies" the payment to go lower, or they might "Modify" your interest rate 2 points lower to help lower your payment.. The rules for loan modification are very specific, and most all who apply won't get approved.. The decline rate has been listed as somewhere in the 97% range, so very, very few are successful... in most cases, you have to be behind on your payments, and show the lender you suffered a hardship.. Lost job, large reduction in income, deceased spouse, severe illness.. Etc... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

A loan modification is typically a last resort for a borrower who is having trouble making the mortgage payments. If you are eligible to refinance than a loan modification is not for you. I am a direct lender here in Union NJ. Send me an email and I can do a free analysis of your situation and steer you in the best direction. PBotros@OmegaLoans.net or give me a call, Office- 908.933.0253 and ask for Peter (ext. 319).

My firm has completed 5400 modifications in the last four years. See your in NJ, I am in Suffolk County Long Island. I have had people drive from Maryland to meet with me. My secret to success is understanding what the norm is and put myself myself in another person's shoes to correct the problem. Answering your question - a loan modification is a change in the original mortgage terms, to modify the loan into an affordable payment. Modifications are nothing like refinances. The qualify there are two initial points looked at - 1st your have enough income to support the loan at the lowest rate. 2% on conventional loans and 5% on FHA mortgages. 2nd that there is a valid hardship, unless your 60 days late your bank will not validate there is anything wrong. Since your are in a Judicial state (like NY) - lender has to go through the court system in order to foreclose on your home, it takes almost three years to foreclose on a property. Just this week brought in a case of a mature couple where the Mr. had a heart attack three years ago, without his income the Mrs wasn't able to pay the mortgage. One of the daughters moved back home, using her income they now show affordability. In modifications - people do not have to be on the existing mortgage, household income is looked at. Every borrower I speak too has a different situation, thus every modification is different. If you are behind on your payments, or predict you will be in the near future contact me to give your a clear picture of your situation. Gary @ 631-766-4047