The Loan Modification process is a staged approach which can ensure that the Foreclosure Process is delayed and or the Sale Date is extended or either cancelled until a the Property Owner and the Lender come to terms. Initiating this crucial step and notifying the lender as well as the lenders attorney’s can enable the Property owner to remain in control of the property and potentially Avoid Foreclosure entirely.
Step 1: Determining your Goals
You will speak with a Loan Modified relationship manager to assess your goals and determine a strategic plan of action.
Step 2: Determine Eligibility
While speaking with your loan counselor, you will be asked to answer some questions in order to determine eligibility and the best options for your Loan Modification.
Step 3. Preparing Documentation
Gathering all the necessary loan documents, title and lien information, mortgage statements, payment receipts, property & owner details among other documents and information is critical in preparing your Loan Modification plan. Our Attorney and Loan Mitigation Network will review the packet and will determine if there are any missing items and to gather any more questions if necessary for you to answer.
Step 4. Submitting the Loan Modification Request
Now that we have gathered all of the documents and developed an action plan, we submit the application along with all the documentation to the lender or lender’s attorney (depending how far along you are in the foreclosure process).
Step 5. Patience
Once the documentation is submitted, the lender and their legal counsel usually notify the court to suspend any and all final judgments or Foreclosure Sale Dates. All that is left is to wait for a response. Responses could take a few weeks to a few months-providing additional time for you to enjoy your property.
Step 6. Loan Modification Application Review
The lender may request additional documentation if any is missing or a formal offer could be made by the lender.
Step 7. Requesting a Loan Modification & Principal Reduction
Our Loan Modified Counselors, Attorney Network and Property Valuation teams prepare a loan modification request by submitting an offer to reduce the principal balance along with a loan repayment that is significantly lower.
Step 8. Property Valuation
Once again we wait for the Lender or their Foreclosure Lawyers to review the request. The lender and our teams prepare Property Valuation reports to support our Loan Modification and Principal Reduction requests.
The Lender’s designated teams usually respond in a timely manner. However, at times, they may decide to evaluate the property and its current market value by hiring a third-party Property Appraisal company to compare the value of the home to similar homes that have been sold or that are for sale within proximity of the property. This usually takes a few weeks to over 30 days for them to assess the appraisal report.
Step 9. Negotiation
Loan Modified relationship managers and our attorney network work diligently in negotiating with Lenders and their legal teams. At times, we can derive a Loan Modification Offer in writing by the Lender within weeks but it usually takes a little while longer. Rest-Assured, once you receive a verbal commitment, there usually is only a sit and wait period and the restless nights would soon be over.
At Loan Modified our relationship managers are knowledgeable, experienced and have the direct connections with Lenders to ensure we eliminate time and effort. Our goal is to deliver a Loan Modification Plan that that makes Loan Payments and Your Mortgage Affordable