Loan Process

What is a loan Modification?

A loan modification is the process through which your mortgage company agrees to alter the structure of your loan many times from a adjustable rate to a lower fixed rate and/or extend the term of your loan for the purpose of reducing your monthly payment. They do this as an alternative to the expensive and time consuming process of foreclosure. Each mortgage company has their own set of processes through which they decide whether or not to accept a loan modification, and while there are many similarities, each has its own requirements for approval. As a third party mediator, we have a distinct advantage in negotiating with your mortgage company.

What is a Forbearance Plan?

A forbearance plan ia a mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.

What is a Short Sale?

A short sale is a negotiated settlement. This is when the lender agrees to accept less than the amount owed as a payoff on a loan.

back to top

The Application
Processing
Negotiations and Follow up
The Completion

The Application

The application is the true start of the loan restructure process and usually occurs between days one and five of the start of process. With the aid of a loan restructure professional, the customer completes the application and provides all Required Documentation.

The fee will have been discussed while examining the many loan mitigation programs that may be available to you. Once the fee is paid and all Required Documents are signed and received our staff will make contact with your mortgage company and they will issue a "work-out package". This is your lenders list of instructions and requirements for considering of the loan restructuring.

Processing

Once the payment, application and required documentation are recieved, the processing of the loan restructuring begins. The loan negotiator will review the documentation, fill out all of the necessary paperwork and order all of the neighborhood statistical date pertinent to your home and the homes surrounding it. In some cases it may be necessary to order a Credit Report, Appraisal and/or Title Report. A written letter explaining your hardship may also be necessary and will be developed by the customer and the loan negotiator. The entire package is then put together for submission to the lender.

Back to Top

Negotiation and Follow up

From this point our team of in house attorneys will negotiate the best possible scenerio for your loan which will include performing research for any predatory lending practices that they feel may have been exercised by your mortgage orignator and your current lender. The file will constantly be updated and your lender will be contacted on a regular bases until the restructure is approved.

The Completion

Congradulations your loan has been Modified! A typical Loan Restructuring which consist of a Loan Modification, Forbearance Agreement, Deed in Lieu of Foreclosure of Stop Foreclosure takes between 14-60 business days to complete. Short Sales or Principle Balance Reductions can take anywhere from 60-120 days, with new automated systems this process speeds up greatly. Contact one of our experienced Loan Restructure Specialist today to discuss your particular Loan Mitigation needs or Apply Online and a Loan Restructure Specialist will promptly get back to you.

Back to Top