The Top Six Reasons a Loan Modification Will Work For You!

Posted: 26 Oct 2008 | Categories: Loans

Let’s face it, the Michigan Mortgage market and Housing market has had some steep declines over the past year and a half to two years. Along with several changes to lending guidelines, it has become almost impossible for most struggling homeowners to refinance out of their toxic mortgages. Fortunately, struggling homeowners have a chance at getting their mortgage modified by their current lender.

A Mortgage modification is simply a modification to an existing loan made by the current lender in response to a borrower’s long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term on the loan, a different type of loan or any combination of the three.

Some consumers confuse a loan modification with a forbearance agreement. These are two separate types of agreements. A loan modification is a long term permanent solution for borrowers that show an inability to repay the existing loan, where as, a forbearance agreement is short term relief for those suffering a temporary financial problem.

There are six top reasons that a loan modification will work for you. If any of these apply to your current situation than you are a definite candidate for a mortgage modification. The six top reasons are as follows;

1. Inability to refinance due to loss of equity, owing more than your home is worth

2. Inability to refinance due to lack of positive credit or late mortgage payments

3. Rate currently adjusting or going to adjust

4. Do you have a “Pick-A-Pay” or Minimum Payment Interest only Loan

5. Suffered a Financial hardship (job loss, pay reduction, medical bills, divorce, etc)

6. Currently Facing Foreclosure

If any of the above reasons apply to your current situation than you need to attempt a loan modification. You can try it on your own, but I must caution you, only 20% of homeowner submitted loan modifications are successful. This is mostly due to homeowners submitting incomplete loan modification packages.

Another reason for this lack of success is that the homeowner must spend several hours navigating through the phone tree, re-telling their story over and over again. This can be very discouraging on top of the fact that the homeowner must call during normal business hours, usually 9am-6pm. Plus, it doesn’t get done with one phone call. There is constant follow up involved and more than likely you’ll have to send in information that you have already sent over and over again.

Company’s like Michigan Mortgage Modification are able to navigate through this intricate system of phone trees and incompetent phone jockeys without emotion and get right to the decision maker with speed and efficiency. And when the clock is ticking, that is exactly what is needed.

They realize that when dealing with these complicated and frustrating financial matters, some homeowners may be looking for a more economical solution towards solving this problem. With their DIY loan modification service, customers receive a complete loan modification kit including:

a checklist of all required paperwork your lender will need
our field tested modification document set
contact numbers to your servicers loss mitigation department
a sample hardship letter
detailed instructions
and a ?hour consultation with a loan modification specialist.

The cost for the DIY loan modification service is only $399. If you choose the DIY loan modification service and are unsuccessful, they will credit the full cost of that service ($399) towards the full loan modification service and take over your file as if you purchased the full service from the start!

For the Full Loan Modification Service, Michigan Mortgage Modification charges a $500 upfront consulting fee and one month’s mortgage payment upon acceptance of the new loan modification. If, in your case, they have to retain an attorney, you will also have to pay for the retainer, which ranges from $500 to $1,000(Clients are consulted prior to obtaining legal counsel). They’ve been able to successfully complete 70% of their loan modifications without retaining an attorney.

Michigan Mortgage Modification is not the cheapest, nor the most expensive. What they are is a professional results driven company dedicated to one purpose. That purpose is protecting the American dream of struggling home owners whom are hand cuffed in this turbulent and unpredictable housing market.

The author, Trevor Sines is a passionate advocate for debt elimination and financial health and also co-founder of Michigan Mortgage Modification, LLC. For more information on preventing foreclosure or how to lower your monthly mortgage payment without a refinance, property appraisal, or credit check, simply visit http://www.MichiganMortgageModification.com

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