Learn About Loan Modification - Arizona Loan Modification Company

TELL ME WHAT I NEED TO KNOW ABOUT ARIZONA LOAN MODIFICATIONS.

Loan Modification Defined: A Loan Modification in its simplest form is the restructuring of your current loan terms in order to lower your monthly payment, keep you out of foreclosure and in your home. Sometimes called Loan Restructuring or Mortgage Modification.

An Interest Rate Modification is where your lender(s) agree to lower the interest rate temporarily or permanently. Common reductions go as low as 2%-3% for a temporary interest rate drop, and as low as 4%-5.5% for a permanent rate drop. Our negotiations will consist of getting the bank to agree to the lowest rate for the longest period of time. Some banks are limited in their ability to offer homeowners the lowest rates based on their investors' criteria, but our relationships and experience will quickly get the best interest rate drop available.

A Term Modification is the extension of the repayment period for your loan. For instance, a borrower 5 years into a 30 year loan can request a Term Modification resulting in re-writing the note to a NEW 30 or 40 year term. This type of modification is almost always offered permanently. It can be used in addition to Interest Rate Modifications to maximize the monthly savings for the borrower.

A Principal Balance Reduction is where your lender(s) reduce the principal amount owed wiping out a portion or all of your negative equity you may have due to the fact that home values (especially in certain geographic regions) have plummeted. This is the lender's least favorite of the modifications currently in practice. It is reserved almost exclusively for second trust deeds, and those found with major Real Estate Settlement Procedures Act (RESPA), Truth In Lending Act (TILA), or Home Ownership Equity Protection Act (HOEPA) violations. They are extremely difficult to negotiate; however, our in-house attorney along with our professional Loan Modification Negotiators have had much success in completing aggressive loan modifications with Principal Balance Reductions.

Overall, Arizona Loan Modifications usually consist of a unique combination of the options mentioned above. REMEMBER, YOUR LENDER DOES NOT WANT TO OWN YOUR HOME! They want to keep you as a performing asset on their books and will search for the cheapest way to keep you from defaulting and going into foreclosure. Many government agencies, such as the FDIC, are heavily pushing for mandatory loan modification programs, and we believe NOW IS THE TIME to get aggressive and request a loan modification from your lender(s)! DO NOT WAIT UNTIL IT IS TOO LATE!

WHAT ARE THE QUALIFICATIONS TO GET A LOAN MODIFICATION?

Typically, a homeowner must have most of the following qualifications in order to be a good candidate for a Loan Modification:

You Need To Have A Financial Hardship (This can be a divorce, loss of job, interest rate adjusted out of control, medical, death in family etc.)
You Need To Have Provable Monthly Income (You bank(s) will only modify a loan if they are positive you can afford the new modified monthly payment)
You Need To Have A "Funky" Loan With A High Interest Rate (We mean an adjustable rate mortgage, a negative amortization mortgage, an interest only mortgage, a mortgage with a large balloon payment etc… and an interest rate of 7% or higher)

WHAT IF I AM BEHIND ON MY PAYMENTS...CAN I STILL DO A LOAN MODIFICATION?

Absolutely, as long as the foreclosure auction has not occurred, we can still conduct a loan modification on your behalf. The optimal time to propose a loan modification to your lender is just after you miss your first or second payment! If you are behind, we ask that your lender put any missed payments (arrears) on the back side of your loan and wipe out any late fees you may have incurred. We also ask that they do not report these arrearages to the credit bureaus. In most cases we get this request accepted! DON'T WORRY, IF YOU ARE CURRENT ON YOUR PAYMENTS, WE CAN STILL DO A LOAN MODIFICATION. As long as you meet your lenders loan mod qualifications, we can still help you.

HOW LONG DOES A LOAN MODIFICATION TYPICALLY TAKE?

In most instances, a loan modification takes 60-90 days…but it could take longer, especially if we are going for a principal balance reduction and your lenders legal department gets involved. Our fastest loan modification to date has taken us only 33 days!

WHAT IS ADJUSTMYLOAN.COM'S PROCESS...HOW DOES YOUR PROGRAM WORK?

First, you need to contact us to see if you qualify for one of our Arizona Loan Modification Programs. The pre-qualification process takes about 10 minutes and you will need your loan information handy so our loan modification specialists can review your situation. Once we pre-qualify you, we explain your options in detail. We make sure you are aware of the benefits and consequences of a loan modification, putting you in control of your financial future! If you choose to move forward, we will then take a detailed application to begin the Loan Modification Process. This should take about 20-25 minutes and you would need to gather all your loan documents, mortgage statements, and your monthly income and expenses. Our goal here is to begin building the Loan Modification Proposal based off of your specific circumstances. Once we recieve all your necessary loan modification documents, we can begin building your loan mod proposal. You will need the following for us to process your loan modification:

Bank Correspondence / Foreclosure Notices
Hardship Letter Explaining Your Circumstances And Why You Must Modify Your Loan (must be signed by borrower)
2 Most Recent Mortgage Statements For Each Loan
2 Months Bank Statements For All Borrowers (12 Months If Self Employed)
2 Months Pay-Stubs For All Borrowers
2 Years Tax Returns Including W2’s, 1099’s And All Schedules For All Borrowers
Insurance Information (agent name, company, address, phone, email and policy number)
Any Documents To Verify Hardship (Death Certificate, Medical Bills, Divorce Paperwork ETC)
Your Loan Paperwork (HUD-1 Settlement Statement, Good Faith Estimate, Truth In Lending Disclosures, Promissory Note, Deed Of Trust etc.)

THEN WE DO A FORENSIC LOAN AUDIT TO UNCOVER ANY PREDATORY LENDING VIOLATIONS!

Typical violations we find in the loan files:

Broker disclosures were never made
Risk factors for credit were not disclosed
Your FICO scores were not properly disclosed
RESPA booklet was not recieved on time (or not at all)
Some documents were not signed or notarized properly
There is no ARM disclosure or the ARM disclosure is not accurate
There is no Final Hud-1 in the file or the Final Hud is not accurate
Notice of Right to Cancel (two copies) were not given to each borrower
Truth in Lending Notice of Right to Cancel is not filled out properly by the lender
A good faith estimate (GFE) was not given within three days of taking the loan application
No payment schedule is included in the loan documents or the payment schedule is not accurate
Truth in Lending info was not recieved (or mailed) within three days of taking your loan application
There is no copy of the promissory note (it is unclear who owns your loan...or who is entitled to enforce it)
Three Day rescission period was not provided for clients who sign and loan funds on same day (non-purchase money loans)
Truth in Lending Statement does not accurately disclose the finance charges, APR, amount financed, or total of payments

At the same time we are uncovering any predatory lending violations, we are submitting your initial proposal to your lender(s). We use any Forensic Loan Audit findings as our negotiation trump card to get you the best loan modification terms possible! We aggressively negotiate your loan mod with all of your lenders which could take up to 90+ days. Once a modification is reached, we facilitate the paperwork needed to complete your new low monthly payment and walk you through all documents your lender(s) will need you to sign.