I am worried that a loan modification is going to ruin my credit. Is that true?

No, a loan modification will not affect your credit. What may affect your credit score is if you fall behind on your payments. If you complete a loan modification and never go late, your credit will not be affected. That being said, our clients that were late on their payments saw greater and faster results.

If you are debating if a loan modification is for you, ask how much your credit is worth. If it means draining your 401k and all your savings to stay current, that does not sound like it is worth it. If you end up going late on your payments and can save $75,000 over the next 5 years, is that worth a knock to your credit score? Ask it this way, would you pay $75,000 to maintain your current credit score? Because that is essentially what you are doing.

The cost of using your savings and 401k is more then financial. What happens if you need that money for an emergency? How many more years will you have to work because you use your retirement money today? The choice is up to you alone. What is your credit score worth to you? If you can keep your credit intact (by staying current) and complete a loan modification, by all means, that is a best case scenario. But, do not let your credit score force you to lose everything else. Besides, a foreclosure is much worse then 3 or 4 months of missed payments.

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Phoenix Loan Modification Questions: How Does A Loan Modification Affect My Credit?

How is a loan modification different from a refinance?

A refinance requires equity, and an excellent credit score. If you are in the Phoenix Metro Area, you probably do not have any equity. You would be getting a new loan, so all of the general requirements would apply: Income, credit, etc.

With a loan modification, you are simply renegotiating the terms of your current note. You are not getting a new loan, and you are not changing lenders. You are simply trying to get a new interest rate, term, and principal balance.

If you can not qualify for a refinance, give us a call. A loan modification may be your best bet. We can have a no-cost consultation to see if your situation fits for a loan modification. (480) 389-5199

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Phoenix Loan Modification Questions: Loan Modification vs. Refinance

My credit is in the toilet now, can I still qualify to get a loan modification?

Yes. The beautiful thing about the loan modification is that there are no credit requirements. If you were trying to get a loan, your credit would have to be immaculate. Since you are not getting a new loan, your credit score does not come in to play.

The banks primary concern is that you will be able to make the new payments. If you are expenses are more then your income, the bank wants to make sure that you will be able to afford the new payments. They don’t want to go through the hassle/cost of a loan modification if you are going to re-default anyway.

If you are, or are going to be, falling behind on your mortgage payments, please don’t wait to call us. We can get your loan modification started right away. The sooner you start, the sooner you get results. (480) 389-5199

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Phoenix Loan Modification Questions: My Credit Is Bad Can I Still Get A Loan Modification?

I am currently facing a foreclosure, will a loan modification stop it?

Yes and no. If you have a loan modification approved, yes, the foreclosure will not happen. But if you are in the middle of completing a loan modification, it will NOT stop the process. Until you have a completed loan modification, the bank has every right to continue with the legal time lines of a foreclosure. While negotiating the loan modification, we do everything in our power to delay the foreclosure date. The bank wants to retain the threat of foreclosure, in case things fall apart, but we have been able to successfully delay the foreclosure sale date many times.

Your best bet is to start the loan modification process early. The sooner you get started, the better chance you have of getting a loan modification completed. Get started today by giving us a call: (480) 389-5199

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Phoenix Loan Modification Questions: Will A Loan Modification Stop Foreclosure?

I am currently behind with my mortgage payments, what happens with that balance?

This is a fairly common question. You owe the bank $7500 in back payments, what happens if you get a loan modification? Basically, the bank will agree to push the past due amount to the balance of the loan. So if you have a principal balance of $250,000 and are behind by $7500, after you do the loan modification your loan balance would be $257,500.

If you are behind on your payments, please don’t hesitate to give us a call. When we do a loan modification, you see results that will astound you. (480) 389-5199

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Phoenix Loan Modification Questions: What Happens With My Late Payments?

I am currently unemployed, can I still get a loan modification?

Yes. A huge problem, especially in the Phoenix Metro Area, is unemployment. This has caused many homeowners fall behind in their payments. The problem is showing income to the bank. If you are receiving unemployment, you can show income. If your spouse is still working, that can show income. The bank wants to know that if they offer a loan modification, you will be able to make the payments.

If your income (unemployment included) shows enough money coming in to cover your monthly expenses and a reduced mortgage payment, you have a good shot of getting a modification approved. If your expenses are too tight, even with a reduced payment, they might not approve a modification for you. You have to make a monthly income, but not too much, and not too little.

If you aren’t sure how your finances are staking up, give us a call. We can have a free consultation to make sure you qualify for a loan modification. (480) 389-5199

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Phoenix Loan Modification Questions: Can I Get A Loan Modification If I Am Unemployed?

What documents are required to qualify/receive a loan modification?

When you decide to do a loan modification, the lender is going to require certain documents in order to prove your need:

• Last 2 years Tax Returns
• Last 2 years W-2′s
• 2 Most Recent Bank Statements (All Accounts)
• 30 Days Most Recent Pay Stubs
• Financial Statement
• Any and all legal notices and correspondence between you and your lender (IF APPLICABLE)
• Pension, Social Security Income, Alimony, Child Support, etc. (IF APPLICABLE)
• Original Loan Paperwork (For the Forensic Audit)

The original loan paperwork provides us with the information we need to complete a forensic audit of your loan. This process MUST be done before we can submit the loan modification package. You can do a loan mod with out a forensic audit, but the leverage it gives you is invaluable.

If you are falling behind on your payments, or see it happening soon, don’t hesitate to call us. We will help you go over your financial position and see if a loan modification is right for you. (480) 389-5199

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Phoenix Loan Modification Questions: What Documents Do I Need For A Loan Modification?

I am current with my mortgage payments, but not for long. Do I have to be late with my mortgage payments to get a loan modification?

No, you do not have to be late with your mortgage payments to get a loan modification. That being said, we have had better, and faster, results with loan modifications when the homeowner was late with their payments. Think about it from the banks perspective: If one homeowner is giving them every dime they are asking for and another homeowner is giving them nothing, who is the priority?

A banks job is to collect money from their loans. If I was late with a mortgage payment, the bank has an opportunity to do a loan modification with me to start getting payments coming in. If I am current with my payments, they do not have any way of getting MORE money from me. I know its screwed up. That’s just the way it is.

*Side note: With a loan modification, the only thing that affects your credit is when you are behind on payments. You can complete a loan mod while staying current and keeping your credit intact.

If you would like to see what your payments would look like with a loan modification, please don’t hesitate to give me a call. We have completed many loan modifications while our clients stay current. Don’t wait until you have used up your savings to stay current on your mortgage. Call us today: (480) 389-5199

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Phoenix Loan Modification Questions: Do I Have To Be Late With My Mortgage Payments?

What type of hardship do I need to be facing to qualify for a loan modification?

This is a pretty common question. Hardships, and their severity, can vary greatly. The most common are health, wealth, and family needs.

• Health

- Family member gets sick, medical bills, can’t work because of medical issue, etc.

• Wealth
  - Laid off from work, loss of roommate, interest rate is resetting, balloon payment is due, reduction of hours at work, etc.
• Family Needs
  - Birth, death, divorce, etc.

There are MANY hardships out there. If something has happened since you got the loan that changes your financial position for the worse, it is probably a hardship.

If you are facing a hardship, give us a call. We can help you see if you qualify for a loan modification and what that might mean for you and your family. (480) 389-5199

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Phoenix Loan Modification Questions: What About The Hardship?

Can I do my own loan modification?

Absolutely! Just be aware of what you are getting yourself into. Just like selling your own home, it is possible, but you won’t see as dramatic of results as if you had hired us. We have heard stories of homeowners spending 6 months negotiating with their lender only to be offered a reduction of $43. There are certain things we do (including a forensic audit) that help you see results that truly impact your life.

If you decide to do the loan modification on your own, be aware of tricks the bank may try to pull. Read the final paperwork CAREFULLY and make sure it is in line with what they agreed to verbally. If you sign off on the documents and it’s different from what you thought, you could be stuck.

If you have done your own loan modification and you want us to review it, please don’t hesitate to give us a call. Obviously we assume no liability with what you decide to do, but we may see something you didn’t. Give us a call at (480) 389-5199

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Phoenix Loan Modifcation Questions: Can I Do My Own Loan Modification?