Why don’t I simply ask my lender for a Loan Modification myself?
It would be great if borrowers and lenders had the ability to negotiate loan modifications, but the problem is two-fold: some lenders are more interested in recouping any potential losses up front via a foreclosure than they are in keeping a customer for a long period of time with the help of a modified mortgage. Secondly, borrowers are ill equipt to communicate and assemble the proper items the lender will require.
I keep hearing about bailout plans. How can I benefit from any of these?
Government officials have been talking about all kinds of bailout plans and the different ways they are going to help homeowners. There are a few plans out there and a few more in the works. Rest assured that if your lender partakes in any of these proposed government plans and you qualify for the plan, The Mortgage ReArranger will integrate them into your package.
If someone lives with me and I am using their income to prove that we can afford the house will they be added to the mortgage?
No. Your mortgage company is just looking for you to prove to them that you can afford the house. We can use someone’s income that lives in the house but is not on the loan. If we use their income to prove that you can afford the payment, they WILL NOT BE PUT ON THE MORTGAGE. The only way to add someone to your loan is if the loan is rewritten through a refinance. The Mortgage ReArranger does not obtain a new loan; The Mortgage ReArranger helps you apply for new terms on your present loan.
Is Loan Modification similar to Debt Consolidation or Refinancing?
The answer is a resounding no. Debt consolidation seeks to lump a group of unsecured debts into either a loan or a program that offers lower payments. It does not apply to mortgages. Refinancing a home requires the borrower to apply for a new mortgage for the home and as such will require a down payment, an appraisal, and a lot of fees for the lender. This is often not an affordable solution for a borrower who is already stretched to the max with the current mortgage payment and the existence of an adjustable rate mortgage that eats up a lot of the available funds on a monthly basis may actually be held against the applicant and thus causes the refinance application to be denied. Loan modification seeks to restructure an existing loan.
My credit is not good. Is that going to be a problem?
Absolutely not, you already have a mortgage with your lender and you are not asking for a new mortgage. You are reworking the terms of your existing mortgage. The reason that credit does not matter is because your lender knows they have limited options. They can either foreclose on the home or work with you. Many times, working with the homeowners is the most financially viable option. What matters is that you can prove to the lender that it is in their best interest to work with you rather than foreclose on the home. This is what is done through the financial package that is prepared and sent to your lender.
If my credit doesn’t matter, then why do you ask about my credit report?
Your lender may pull your credit report but not for your credit score. What they are looking for is the monthly payment of the bills that show up on your credit report. We ask for this to calculate your income and expense report, which helps us to determine if you qualify for any available programs.
How long will this process take?
Your NHC binder generally takes about seven days to prepare. It typically takes your lender between 4-6 weeks from start to finish. This is largely dependent on two things: how quickly you provide us with the information we need and how backed up your lender is. It could be much quicker or longer than the estimated time frame.
Are there any hidden costs?
Absolutely not, there are never any additional or hidden fees. All of the costs are clearly spelled out in the contract. There is also a 3 day right to recind the contract for any reason, no questions asked.