With the increase of interest rates on home loans, millions of 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, versus taking the home through a foreclosure process, only to loose money on its resale.

Remember: lenders lose money on bank-owned properties as they invariably sell for less than market value. What’s worse, they have to pay sales and closing costs in addition to the cost of holding and maintaining the property prior to sale—all in a market that is still facing declining property values.

We construct a financial plan that clearly demonstrates what the homeowner can in fact afford. This plan is written in terms a lender will understand—and appreciate.  

Also as the homeowner is often late with their payments and in foreclosure or soon to be in foreclosure, we always ask the lender to take the delinquent payments and add them onto the principal balance of the loan.

A rate reduction in most cases is the only possibility for a homeowner to keep their home.  Sometimes, a reduction in principal balance is also required. It all depends on the results of our financial underwriting.      

Second Mortgage Opportunities: Sometimes, when we can prove the homeowner owes more first mortgage debt that the value of the property, and there is a second mortgage loan as well, we often can convince that second mortgage lienholder  to take a major principal reduction—as much as 50% to 80% off the balance of their loan.

Loan modification offers great opportunities, if you know how to vantage them. Our job is to create opportunities through effective loan modification for your clients, wherever possible!