Investment Mortgage Guy

There are many people right now that are concerned about their mortgage and have heard that many lenders out there are open to modifying or (amending the terms) of their loans for more favorable terms.

Mortgage modifcation companies have been popping up all over the country. Many of them are ran by mortgage orignators that got out of lending the business. (be careful) Although I fully believe that there are plenty of these companies out their that have great intentions of helping people successfully modify their mortgages, I worry that some of these compannies are just going to exploite people further by taking up front money and then aren’t able to do anything for the client.  Do you homework about who you choose to work with.

I have helped many people successfully get their mortgage modified. Most lenders have a simillar process that has to be followed to successfully get a mortgage modified. The first step to a successful loan modification is that you will be required to be late on your mortgage. This is a very hard step (emotionally) especially if you have always been on time with your bills in the past. Lenders know this and it sets an important bar for them and tells them that you are serious about the need to modify your loan.

Secondly, you need to determine if a 30-year fixed fully amortized rate at 5% will help your situation. (this is not always the package you get but it is most common) For some people, that just isn’t gong to lower their payment enough. If a term like this won’t help you, a short sale or foreclosure may be a better option for you.

Finally, You need to be prequalified. You have to prove that you have the income required to be able to afford the new payments. 51% of all current loan modfications are failing because people still can’t make their payments. Lenders are going to make sure you can pay them back if they are going to agree to modify your loan.

If all three of these hurdles seem feasable to you, a loan modification may be a great way to save you thousands of dollars in interest over the life of your loan. You can definately take this on with your lender on your own however some poeple would prefer to pay us a $1500 fee (only upon successful modfication) and have us handle things for them.  To learn more about our company, check out www.modmanagers.com.

I hope this article gives you a better idea about how the process works. Feel free to call me for more questions 952-808-2820.

Rob Bonahoom Mortgage Coach