Loan Modification Frequently Asked Questions

The loan modification process can be a rather intensive process. On this page we would like to cover what we get asked on a regular basis by our clients during the phase of consideration for a loan modification.

1. What is a loan modification and what can it do for me?

A loan modification is the most basic definition is a change of the terms origianlly agreed to between a borrower (you) and the bank that holds the mortgage note. When you sat down and signed that huge stack of paperwork, that was a massive contract that covered all the details of the payments and terms of your mortgage. When you request a modification of those terms, you are asking the bank too agree to changing the terms of the contract you entered into with them.

A loan modifiction canhave a number of results that can benefit your best interest including but not limited to a reduction in payment, either temporary or permanent, a forgiveness of late fees and penalties, possible principal reduction, moving you loan back into current payment status thus removing any sales date or threat of foreclosure assuming the payments are ket current moving forward.

2. Why would a bank modify the loan terms? 

Well it's no secret that the mortgage banking industry has taken a massive hit over the last few years. As  result, the Real Estate market has also been crushed in most parts of America. This massive loss in value and glut of homes that have been turned over to the banks as foreclosures has lead to a climate that requires banks, operating in their own best ineterest, to modify and extend certain terms to keep homeowners in the home making payments. This is a means of dammage control for the bank to help turn a negative asset back into a positive asset that is delivering some income in the form of ineterst instead of having yet another vacant home on their books that they cannot get sold without taking a massive reduction at an austion.

3. I have received a Notice Of Intent To Foreclose, can I still get a loan modification?

YES - If you are just receiving a Notice of Default - OR - a Notice of Intent To Foreclose there is still time to save your home. Time is not on your side though and you will hve to move quickly. Your best bet is going to be to get in contact with an expert like Safe Haven Loan Modifications. We can jump right in and get your file caught up to the point that it should be at.

4. I have received a notice of sale letter, do I have enough time to get a loan modification?

In most cases the answer here is no. It is worth it to have one of our Safe Haven team members contact your bank to see if there is anythng that can be done as banks are in a position of hardship themselves and some might be more flexible than others.