With the increase of interest rates on home loans many homeowners with adjustable rate loans are faced with mortgage payments they can no longer afford.

Our job is to convince the current lender that it is better to lower the homeowner's payment by lowering the interest rate or payment rate by creating a payment plan the borrower can afford, than to take the home with a foreclosure sale and lose money on the re-sale. Keep in mind lenders lose money on bank owned properties as it will sell for less than market value, and they must pay a commission to a Realtor; and closing cost plus the cost of holding the property while they wait for a sale in a market that is depreciating.

We need to prove to the lender what the maximum payment is that borrower can afford by constructing a financial plan for the homeowner that the lender will approve.

Also as the homeowner is often late with their payments and in foreclosure or soon to be in foreclosure, we need to ask the lender to take the delinquent payments and put them on the back of the loan.

A rate reduction in most cases is the only possibility for a homeowner to retain their home --our fee is a risk that each homeowner must weight. Note: the success rate on a workout  program without a rate reduction is 97%.   

Note: Sometimes when we can prove you owe more that the value of the property and there is a second loan, we can convince that second lender to take a major reduction --of 50% to 80% -- off the balance of the loan.