| Let's face it, the Michigan Mortgage market and | | | | through the phone tree, re-telling their story over and |
| Housing market has had some steep declines over the | | | | over again. This can be very discouraging on top of |
| past year and a half to two years. Along with several | | | | the fact that the homeowner must call during normal |
| changes to lending guidelines, it has become almost | | | | business hours, usually 9am-6pm. Plus, it doesn't get |
| impossible for most struggling homeowners to | | | | done with one phone call. There is constant follow up |
| refinance out of their toxic mortgages. Fortunately, | | | | involved and more than likely you'll have to send in |
| struggling homeowners have a chance at getting their | | | | information that you have already sent over and over |
| mortgage modified by their current lender. | | | | again. |
| A Mortgage modification is simply a modification to an | | | | Company's like Michigan Mortgage Modification are |
| existing loan made by the current lender in response to | | | | able to navigate through this intricate system of phone |
| a borrower's long-term inability to repay the loan. Loan | | | | trees and incompetent phone jockeys without emotion |
| modifications typically involve a reduction in the interest | | | | and get right to the decision maker with speed and |
| rate on the loan, an extension of the length of the term | | | | efficiency. And when the clock is ticking, that is exactly |
| on the loan, a different type of loan or any combination | | | | what is needed. |
| of the three. | | | | They realize that when dealing with these complicated |
| Some consumers confuse a loan modification with a | | | | and frustrating financial matters, some homeowners |
| forbearance agreement. These are two separate | | | | may be looking for a more economical solution |
| types of agreements. A loan modification is a long | | | | towards solving this problem. With their DIY loan |
| term permanent solution for borrowers that show an | | | | modification service, customers receive a complete |
| inability to repay the existing loan, where as, a | | | | loan modification kit including: |
| forbearance agreement is short term relief for those | | | | - a checklist of all required paperwork your lender will |
| suffering a temporary financial problem. | | | | need |
| There are six top reasons that a loan modification will | | | | - our field tested modification document set |
| work for you. If any of these apply to your current | | | | - contact numbers to your servicers loss mitigation |
| situation than you are a definite candidate for a | | | | department |
| mortgage modification. The six top reasons are as | | | | - a sample hardship letter |
| follows; | | | | - detailed instructions |
| 1. Inability to refinance due to loss of equity, owing more | | | | - and a ½ hour consultation with a loan |
| than your home is worth | | | | modification specialist. |
| 2. Inability to refinance due to lack of positive credit or | | | | The cost for the DIY loan modification service is only |
| late mortgage payments | | | | $399. If you choose the DIY loan modification service |
| 3. Rate currently adjusting or going to adjust | | | | and are unsuccessful, they will credit the full cost of |
| 4. Do you have a "Pick-A-Pay" or Minimum Payment | | | | that service ($399) towards the full loan modification |
| Interest only Loan | | | | service and take over your file as if you purchased |
| 5. Suffered a Financial hardship (job loss, pay reduction, | | | | the full service from the start! |
| medical bills, divorce, etc) | | | | For the Full Loan Modification Service, Michigan |
| 6. Currently Facing Foreclosure | | | | Mortgage Modification charges a $500 upfront |
| If any of the above reasons apply to your current | | | | consulting fee and one month's mortgage payment |
| situation than you need to attempt a loan modification. | | | | upon acceptance of the new loan modification. If, in |
| You can try it on your own, but I must caution you, only | | | | your case, they have to retain an attorney, you will |
| 20% of homeowner submitted loan modifications are | | | | also have to pay for the retainer, which ranges from |
| successful. This is mostly due to homeowners | | | | $500 to $1,000(Clients are consulted prior to obtaining |
| submitting incomplete loan modification packages. | | | | legal counsel). They've been able to successfully |
| Another reason for this lack of success is that the | | | | complete 70% of their loan modifications without |
| homeowner must spend several hours navigating | | | | retaining an attorney. |