| After speaking with many clients in '08 and the first | | | | qualify for a loan modification. One of the problems we |
| part of '09 there seems to be a reoccurring question, | | | | are facing today is that consumers don't always know |
| "Will we ever recover from this mortgage nightmare". | | | | where there money is going and may not understand |
| Many of the clients we work with that are facing | | | | or wrongly classify information while going through the |
| foreclosure or a loan modification situation also have | | | | financial worksheet that could have a negative impact |
| credit card debt issues. The fact that they are behind | | | | on the approval of the loan modification. |
| on there mortgage coupled with the credit card debt | | | | This is where a loan modification company can prove |
| as well effects the credit score. | | | | to be invaluable for the consumer. The specialist works |
| Part of the fear expressed by clients is that they don't | | | | for the consumer not the lender. This loan modification |
| know what the future holds for them and they feel as | | | | specialist should have a very good understanding of |
| though they are now doomed for the rest of there | | | | the lenders requirement to be approved for a loan |
| financial life. The fact of the matter is, they are not | | | | modification and can help guild the homeowner through |
| doomed and can do things to improve there financial | | | | the process with a higher level of success. |
| position so that in 2 to 3 years they have recovered | | | | Remember, if you don't qualify you have to wait 12 |
| to above average level, if they implement a strategy. | | | | months before you can re-apply for another loan |
| Lets say for example that a client is facing a | | | | modification. |
| foreclosure or loan modification and also has debt | | | | The next item of concern is how is the lender going to |
| issues and bad credit as a result of all the above. A full | | | | modify the loan? Are they going to reduce the interest |
| financial evaluation is needed in oder to provide a | | | | rate? Freeze the interest rate? Bring the mortgage |
| possible road map for the client to follow to address all | | | | current? Suspend payment for a few months? Set up |
| issues, so that they can once again become financially | | | | a principle only payment? Put the unpaid principle on |
| stable and prosperous in a few years. | | | | the back of the loan? Adjust the total principle owed |
| Dealing with the mortgage issue | | | | based on current market value with an equity share? |
| So the first issue is the mortgage which can be | | | | Change the term of the loan? Or do a combination of |
| handled in a couple of different ways. First, is there a | | | | adjustments? Will you be able to successfully maintain |
| possibility of loan modification. The biggest issue with | | | | your mortgage with the new loan modification terms? |
| loan modification is, will it allow or provide enough | | | | What does this effect your credit? Will you need to |
| change to keep the loan current or is the customer | | | | refinance in a few years? |
| going to end up in the same situation again in 6 | | | | The possibilities are endless and as the Obama |
| months? The statistics out there now seem to indicate | | | | administration takes over office there seems to be |
| that there is a real cause for concern that the client | | | | other possibilities as well regarding loan modification |
| may be in the same situation 6 months from now. We | | | | coming down from a federal level. |
| believe that issue is a direct result of lenders dealing | | | | The key here is that if you are going to apply for a |
| directly with the consumer and not providing a good | | | | loan modification you need to know what all your |
| long term strategy for the consumer. | | | | options are and how those options effect you long |
| What is the process/requirements for a loan | | | | term. This is where a loan modification company can |
| modification? | | | | be of support to you and make sure that you |
| Once you contact your lender to discuss a loan | | | | understand all of your options so you can make the |
| modification you will be required to provide very | | | | best financially strategic decision. |
| detailed personal financial information to the lender or | | | | Next we will talk about some of the strategies to help |
| loan mod specialist along with a hardship explanation | | | | with credit card debt issues. |
| so that the lender can review and determine if you | | | | |