Loan Modifications

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A loan modification is a change made to the terms of an existing mortgage by the lender. This process is intended to make the loan more affordable for the borrower by adjusting the interest rate, extending the loan term, or adding missed payments to the loan balance.

1. Application Submission:

○ You must submit a detailed application to your lender, including financial

statements, proof of income, a hardship letter, and other required documentation.

This step often requires several attempts as documents can be misplaced during

processing or may need to be submitted multiple times. Importantly, lenders will

not begin reviewing your application until they have received all required

documents, which they typically do not review until you prompt them to. This can

significantly delay the process.

2. Review Period:

○ Once all documents are submitted and reviewed, the lender will begin the review process, which can take several weeks to several months.

3. Trial Payment Plan:

○ If the lender preliminarily approves your application, you may be placed on a trial payment plan for 3 to 6 months to demonstrate your ability to make the modified payments.

4. Final Decision:

○ After the trial period, the lender decides whether to offer a permanent

modification based on your performance and updated financial situation.

Here are some key points to consider, which you can verify with your lender:

1. Turnaround Time:

○ Loan modifications typically take 30+ days to process. Some cases may take

several months to over a year, depending on the complexity and lender’s

workload.

2. No Guarantee:

○ Approval for a loan modification is not guaranteed. Lenders evaluate your

financial situation and may deny your request if you don't meet their criteria.

3. Foreclosure Proceedings:

○ A loan modification does not automatically stop foreclosure proceedings.

Foreclosure may continue while your application is under review.

4. Impact on Credit:

○ The process of applying for and undergoing a loan modification can negatively

impact your credit score.

1. Lower Monthly Payments:

○ Successful modifications can result in lower monthly mortgage payments.

2. Avoiding Foreclosure:

○ If approved, a loan modification can help you avoid foreclosure and stay in your

home.

1. Lengthy and Uncertain Process:

○ The process is time-consuming and offers no guarantees. Many borrowers wait

months only to be denied.

2. Continued Foreclosure Risk:

○ Foreclosure proceedings may continue during the review period, adding stress

and uncertainty.

3. Negative Credit Impact:

○ The modification process can negatively impact your credit score, making future

borrowing more difficult.

4. Uncertainty of Results

○ There are no guarantees that you will be approved, and no way to find out early in the process.

5. Incomplete Relief:

○ Even with a modification, you might still struggle with payments if the new terms

don’t adequately address your financial situation.

6. Last-Minute Applications:

○ If you've only started the loan modification process 30-60 days before the

foreclosure auction, it's very unlikely the foreclosure sale will be stopped in time.

The timeline is too tight for most lenders to process your application, putting your

home at serious risk.

When considering a loan modification, ask your lender the following questions:

1. What is the total turnaround time for a loan modification?

2. Is approval for a loan modification guaranteed?

3. Will the loan modification process stop the foreclosure?

4. Can you guarantee the process will be completed before the foreclosure date?

5. What impact will this have on my credit score?

6. What are the specific terms and conditions of the trial payment plan?

Main Street Offer's Home Retention Program, provides a more reliable and efficient alternative to loan modifications. Here’s how we can help:

1. Immediate Relief:

○ We reinstate your loan, stopping foreclosure proceedings immediately.

2. Manageable Payments:

○ We refinance your loan under more favorable terms, ensuring your monthly

payments are affordable.

3. Restore your financial stability:

○ We give you the ability to improve your credit and open doors to your financial future.