| In this current economic climate what results can you | | | | their rates lowered to below 1% for the life of the loan. |
| honestly expect with an HSBC loan modification? First | | | | 3. It's also possible that you could get several months |
| we have to determine what a loan modification | | | | of your mortgage payments waived. This will certainly |
| actually is. Simply put a loan modification is when a | | | | depend on the circumstances of your particular loan. |
| bank agrees to restructure the terms that a borrower | | | | Can you get approved for a loan modification yourself |
| agreed to at the loans origination. The term has | | | | or do you need to pay a professional to get it done? |
| become very popular recently because of the | | | | The answer is yes. You can certainly request all of the |
| incredible number of defaults currently happening. | | | | documents for a loan modification and go through the |
| This is not something that was common in the past, | | | | process yourself. There is no law whatsoever |
| but the current situation has forced banks to take | | | | preventing you from doing that. If that is something that |
| actions that under normal circumstances they would | | | | you are considering simply contact your lender and |
| not take. Financial institutions or banks are not in the | | | | request the documents for a loan modification. This will |
| business of owning and managing real estate. They | | | | save you a lot of money. |
| are in the business of lending money. The way bank | | | | It must be mentioned that the process can be very |
| regulations have been set up is causing them great | | | | time consuming as well. As there are literally hundreds |
| harm. For every property the bank takes back they | | | | of thousands of people in a similar situation, hold times |
| have an official "non performing asset". This reduces | | | | on the phone can be incredible. Also, if you do fill out |
| the amount of money that the bank has available for | | | | the documents and send them in incorrectly. It's |
| new lending. That makes it easy to see why the | | | | possible that will have to start over from the beginning |
| banks are now willing to negotiate new terms on an | | | | and lose your place in line. |
| existing loan. | | | | Professional services have nurtured relationships with |
| So what results can you actually expect from an | | | | the loss mitigation departments at the banks and so in |
| HSBC loan modification? | | | | many cases don't have to wait in the same line. Also, |
| 1. The first thing to uncover is if your loan actually | | | | they know exactly what forms need to go in and how |
| contains violations. During the run, when everyone was | | | | to properly fill them out without question. If you are |
| able to qualify for a loan regardless of their income or | | | | searching for a company to work with. Make sure that |
| credit. Many lenders were doing some very shady | | | | they have a licensed attorney that you verify with the |
| things in order to get loans approved. If you can | | | | Bar. Make sure that you are actually able to speak |
| uncover any of these activities you might in some | | | | with the attorney and not just an assistant in the office. |
| cases actually have your loan removed completely. | | | | The attorney should be able to tell you based on your |
| This is rare, but possible. | | | | answers to certain questions if you have a case or |
| 2. Another thing that might happen is the bank may be | | | | not. Although an HSBC loan modification is possible, |
| willing to lower your interest rate significantly. There | | | | you must be certain to do your due diligence for a |
| have been cases where certain individuals have had | | | | successful transaction. |