The 5 Most Important Loan Modification
Questions
Brought To You By: Shawn St. Prix
Question 1: What Is a Loan Modification?
Loan Modification- A procedure whereby a loans payment plan is altered due to the hardship of the borrower.
This can include the rate, term and monthly payment amounts.
The term Loan Modification has been receiving an enormous amount of attention lately and rightfully so. With
many homeowners stuck in toxic adjustable rate mortgages and no ways to refinance out of them, loan
modifications may be the only way to assist struggling borrowers.
The term loan modification is used when your current lender modifies your mortgage
(same loan you have, only changes are made to the note) in order to work with you and make your mortgage
more affordable.
This may involve a modification to your rate, balance of loan, delinquent fees owed, term of loan etc. can be
made by the lender. In the past this was only used when a borrower was delinquent but now with home
prices falling, adjustable rates and no equity to refinance we will see it being used before someone is
delinquent. This will be the best way to help people avoid foreclosure.
WHAT WILL A LOAN MODIFICATION DO FOR ME?
A loan modification will change the existing mortgage note and give YOU the client a bright new start in
managing your home. Accounts will be brought up to date immediately.
With a loan modification you take the mortgage you now have and change the interest rate and payment
requirements in order to achieve a fixed rate. A change in rates and payments does not result in the need for
a new closing, legal fees, survey, appraisal, or taxes, unlike a traditional refinance, where you would be
paying for all these fees.
1
Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other
financing alternatives. It is usually in the lender's best interest to agree to a workout arrangement.
If you qualify, the lender will to reduce the loan interest rate, reduce monthly payment amounts or change other loan
terms to allow for an affordable loan to allow you to avoid foreclosure.
Learn all this and more at: Do It Yourself Loan Modification Kit http://tinyurl.com/28m7d53
Question 2: Do I Qualify For A Loan Modification?
DO YOU MEET THE FOLLOWING CONDITIONS?
• You have been current and made payments on-time before the problems which have driven you to this
situation.
• Your Loan older than 1 year.
• When you refinanced, you saved some of that money instead of putting it all towards a large purchase
like a new car.
• You show income for any other properties that you own.
• You owe significantly more than the property is worth.
• You only have 1 mortgage on the subject property.
• You did not lie to your lender when you applied for your loan.
• Your interest rate is about to adjust to a level that you cannot afford.
If you can answer yes to these questions, then you have met the first part of the qualification for someone
who is a good candidate for a Loan Modification.
YOU HAVE SUFFERED SOME SORT OF HARDSHIP
Here is a list of hardships which get approved:
1. Death/Illness of Mortgagor.
2. Death of a Family Member.
3. Marital Difficulties.
4. Property Problems.
5. Reduction of Income.
6. Excessive Obligations.
7. Employment Transfer.
8. Unemployment.
2
9. Inability to Rent.
10. Inability to Sell.
11. Military Service.
13. Business Failure.
14. Reduction of Income.
15. Fraud.
16. Payment Adjustment.
17. Payment Dispute.
Any one or combination of these hardships will satisfy the second part of the qualification for someone who is a good
candidate for a Loan Modification.
Learn all of this and more at: Do It Yourself Loan Modfication Kit
Question 3: What are the 4 steps to a Loan Modification?
STEP 1: CONTACTING YOUR LENDER
If you are having problems making your mortgage payments, the first thing you should do is speak to your
lender so that you can work out some sort of agreement. Unfortunately, many borrowers do not follow this
rule. Studies show that at least fifty percent of borrowers who have defaulted on their loan or missed a
payment never even contact their Lender.
Banks are not in the business of property management. They do not want to take back your property! They
are more inclined to work out an agreement with you so that they can receive mortgage payments and you
can stay in your home, rather than go through the foreclosure process which can be costly and expensive.
STEP 2: FILL OUT THE INFORMATION
When you receive the Lenders package, you shouldn't just simply fill out the information. Remember, your
lender is now a debt collector. So any information which you wouldn't want to fall into the hands of an
ordinary debt collector, should not be given to the lender.
Just because lenders ask for something, doesn't mean you have to provide it. Also remember that you have already
qualified for the loan in the first place, and so you are not trying to prove that you are still in-line with their previous
lending criteria.
STEP 3: NEGOTIATING WITH YOUR LENDER
3
You should receive some correspondence from your lender, letting you know that they are ready to discuss
terms with you. If after 1-2 weeks, if you still haven't received any correspondence with your lender, you
should be getting on the phone, to find out what stage of the process you are in.
Once you are speaking with someone who can make solid decisions on your case, you are ready to start negotiating.
STEP 4: SIGNING AND RETURNING THE DOCS
Once you receive the agreement, you should first confirm that this is what was agreed to by you and the lender. If not,
you will need to get on the phone to find out why! Upon satisfaction, this agreement will have to be signed and notarized
and then you will have to send it back to the lender via an overnight service.
We detail the entire process in the KIT: http://tinyurl.com/28m7d53
Question 4: Can I Really Do This Myself, Or Should I Hire A
Company?
In my opinion, paying thousands to a company to do a modification for you is a waste of money! If you follow
my guidelines, you will be able to accomplish this in no time.
A Loan Modification firm will charge you a high fee ($2000-$5000) to submit the docs that you can submit
yourself. Banks are willing to help their clients with a Loan Modification with out an Attorney. What is
important is you have the CORRECT, BANK APPROVED documents ready for submission, so the bank can
efficiently and more effectively review your case.
But I suppose that it is entirely up to you and your comfort level with dealing with your lender. And you must
also consider your current financial situation.
Regardless of what you decide, the first thing you should do is learn all you can about the process, your legal
rights, and what it takes to get your application approved.
These are some of the other questions which you should be asking:
So how do I get started to modify my loan?
Before contacting your bank's loss mitigation department or a loan mod company, do your homework-learn
as much as you can about the loan modification process so you can make informed decisions. Study the kit,
and make the call to your lender.
Why will it work for me?
The government has asked for ALL lending banks to help in the foreclosure epidemic and modify mortgages
for all troubled homeowners. Certain websites can automatically produce your Bank Approved Loan
Modification Package. Going to your lender with a complete modification package, will make a scary process
seem simple.
What if my credit is bad?
4
A Loan Modification is not based on credit. The banks are trying to make a good loan out of a troubled loan.
Learn all this and more at: http://tinyurl.com/28m7d53
Question 5: How Will The 'New' Obama Plan Affect Me?
As we have seen, there are many flaws in this new plan. But it is still a helping hand in an arena which needs
some serious assistance. With homeowners facing the prospect of losing their homes, predatory Loan
Modification Companies have popped up like weeds in an un-kept garden.
These companies have conned the average homeowner into believing that modifying a loan is a very
complicated task, which should be attempted only by professionals. Most of the loan modification companies
consist of recently displaced mortgage brokers! Yes, the same ones who got us into the situation to begin
with.
So it is with great jubilation that we welcome this initiative, even with all of its flaws! Yes, this is a complete
endorsement of the plan, by http://tinyurl.com/28m7d53 Many have asked us if the information in the plan
will have an effect on the information in the kit. And the answer is emphatically YES! It strengthens the fact
that no-one should pay any Loan Modification Company to help them modify their loan.
The new plan creates clear guidelines for efficient loan modification. Uniform guidelines will both make loan
modification faster and cheaper for servicers (who are normally in the business of processing payments, not
modifying contracts) and will also prevent homeowners from ending up back in complex mortgages with
terms and fees they do not understand.
But make no mistake, the plan doesn't offer any assistance or guidelines on how to start or complete the
process. On the contrary, it asks each homeowner to speak with their lenders! So our kit is very relevant and
timely, because it shows you exactly how to do just that. As a matter of fact, the only change which we can
see which has to be made is to the ratio which we use in the kit.
This is a ratio which we developed, and it will still be relevant to those who do not qualify for the new plan.
But for those who do, everything which the kit teaches should be used, and simply the ratio should be
substituted. This is a fantastic development, since your success should be greatly increased, IF YOU
QUALIFY!
5
For all its flaws, the Obama plan could help you if you are a borrower at risk of defaulting on your loan, or if
are already heading toward foreclosure. The plan will not fully be in place until early March. But you may want
to go ahead and contact your loan servicer now to discuss your options.
The servicer should also be able to tell you if your loan is owned or guaranteed by Fannie Mae or Freddie
Mac. If you got a conventional, plain vanilla 30-year fixed mortgage, chances are you are in that category. So
go ahead and collect all necessary documents to give to your lender, just as the kit suggests.
Find out more here: http://tinyurl.com/28m7d53
6
Questions
Brought To You By: Shawn St. Prix
Question 1: What Is a Loan Modification?
Loan Modification- A procedure whereby a loans payment plan is altered due to the hardship of the borrower.
This can include the rate, term and monthly payment amounts.
The term Loan Modification has been receiving an enormous amount of attention lately and rightfully so. With
many homeowners stuck in toxic adjustable rate mortgages and no ways to refinance out of them, loan
modifications may be the only way to assist struggling borrowers.
The term loan modification is used when your current lender modifies your mortgage
(same loan you have, only changes are made to the note) in order to work with you and make your mortgage
more affordable.
This may involve a modification to your rate, balance of loan, delinquent fees owed, term of loan etc. can be
made by the lender. In the past this was only used when a borrower was delinquent but now with home
prices falling, adjustable rates and no equity to refinance we will see it being used before someone is
delinquent. This will be the best way to help people avoid foreclosure.
WHAT WILL A LOAN MODIFICATION DO FOR ME?
A loan modification will change the existing mortgage note and give YOU the client a bright new start in
managing your home. Accounts will be brought up to date immediately.
With a loan modification you take the mortgage you now have and change the interest rate and payment
requirements in order to achieve a fixed rate. A change in rates and payments does not result in the need for
a new closing, legal fees, survey, appraisal, or taxes, unlike a traditional refinance, where you would be
paying for all these fees.
1
Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other
financing alternatives. It is usually in the lender's best interest to agree to a workout arrangement.
If you qualify, the lender will to reduce the loan interest rate, reduce monthly payment amounts or change other loan
terms to allow for an affordable loan to allow you to avoid foreclosure.
Learn all this and more at: Do It Yourself Loan Modification Kit http://tinyurl.com/28m7d53
Question 2: Do I Qualify For A Loan Modification?
DO YOU MEET THE FOLLOWING CONDITIONS?
• You have been current and made payments on-time before the problems which have driven you to this
situation.
• Your Loan older than 1 year.
• When you refinanced, you saved some of that money instead of putting it all towards a large purchase
like a new car.
• You show income for any other properties that you own.
• You owe significantly more than the property is worth.
• You only have 1 mortgage on the subject property.
• You did not lie to your lender when you applied for your loan.
• Your interest rate is about to adjust to a level that you cannot afford.
If you can answer yes to these questions, then you have met the first part of the qualification for someone
who is a good candidate for a Loan Modification.
YOU HAVE SUFFERED SOME SORT OF HARDSHIP
Here is a list of hardships which get approved:
1. Death/Illness of Mortgagor.
2. Death of a Family Member.
3. Marital Difficulties.
4. Property Problems.
5. Reduction of Income.
6. Excessive Obligations.
7. Employment Transfer.
8. Unemployment.
2
9. Inability to Rent.
10. Inability to Sell.
11. Military Service.
13. Business Failure.
14. Reduction of Income.
15. Fraud.
16. Payment Adjustment.
17. Payment Dispute.
Any one or combination of these hardships will satisfy the second part of the qualification for someone who is a good
candidate for a Loan Modification.
Learn all of this and more at: Do It Yourself Loan Modfication Kit
Question 3: What are the 4 steps to a Loan Modification?
STEP 1: CONTACTING YOUR LENDER
If you are having problems making your mortgage payments, the first thing you should do is speak to your
lender so that you can work out some sort of agreement. Unfortunately, many borrowers do not follow this
rule. Studies show that at least fifty percent of borrowers who have defaulted on their loan or missed a
payment never even contact their Lender.
Banks are not in the business of property management. They do not want to take back your property! They
are more inclined to work out an agreement with you so that they can receive mortgage payments and you
can stay in your home, rather than go through the foreclosure process which can be costly and expensive.
STEP 2: FILL OUT THE INFORMATION
When you receive the Lenders package, you shouldn't just simply fill out the information. Remember, your
lender is now a debt collector. So any information which you wouldn't want to fall into the hands of an
ordinary debt collector, should not be given to the lender.
Just because lenders ask for something, doesn't mean you have to provide it. Also remember that you have already
qualified for the loan in the first place, and so you are not trying to prove that you are still in-line with their previous
lending criteria.
STEP 3: NEGOTIATING WITH YOUR LENDER
3
You should receive some correspondence from your lender, letting you know that they are ready to discuss
terms with you. If after 1-2 weeks, if you still haven't received any correspondence with your lender, you
should be getting on the phone, to find out what stage of the process you are in.
Once you are speaking with someone who can make solid decisions on your case, you are ready to start negotiating.
STEP 4: SIGNING AND RETURNING THE DOCS
Once you receive the agreement, you should first confirm that this is what was agreed to by you and the lender. If not,
you will need to get on the phone to find out why! Upon satisfaction, this agreement will have to be signed and notarized
and then you will have to send it back to the lender via an overnight service.
We detail the entire process in the KIT: http://tinyurl.com/28m7d53
Question 4: Can I Really Do This Myself, Or Should I Hire A
Company?
In my opinion, paying thousands to a company to do a modification for you is a waste of money! If you follow
my guidelines, you will be able to accomplish this in no time.
A Loan Modification firm will charge you a high fee ($2000-$5000) to submit the docs that you can submit
yourself. Banks are willing to help their clients with a Loan Modification with out an Attorney. What is
important is you have the CORRECT, BANK APPROVED documents ready for submission, so the bank can
efficiently and more effectively review your case.
But I suppose that it is entirely up to you and your comfort level with dealing with your lender. And you must
also consider your current financial situation.
Regardless of what you decide, the first thing you should do is learn all you can about the process, your legal
rights, and what it takes to get your application approved.
These are some of the other questions which you should be asking:
So how do I get started to modify my loan?
Before contacting your bank's loss mitigation department or a loan mod company, do your homework-learn
as much as you can about the loan modification process so you can make informed decisions. Study the kit,
and make the call to your lender.
Why will it work for me?
The government has asked for ALL lending banks to help in the foreclosure epidemic and modify mortgages
for all troubled homeowners. Certain websites can automatically produce your Bank Approved Loan
Modification Package. Going to your lender with a complete modification package, will make a scary process
seem simple.
What if my credit is bad?
4
A Loan Modification is not based on credit. The banks are trying to make a good loan out of a troubled loan.
Learn all this and more at: http://tinyurl.com/28m7d53
Question 5: How Will The 'New' Obama Plan Affect Me?
As we have seen, there are many flaws in this new plan. But it is still a helping hand in an arena which needs
some serious assistance. With homeowners facing the prospect of losing their homes, predatory Loan
Modification Companies have popped up like weeds in an un-kept garden.
These companies have conned the average homeowner into believing that modifying a loan is a very
complicated task, which should be attempted only by professionals. Most of the loan modification companies
consist of recently displaced mortgage brokers! Yes, the same ones who got us into the situation to begin
with.
So it is with great jubilation that we welcome this initiative, even with all of its flaws! Yes, this is a complete
endorsement of the plan, by http://tinyurl.com/28m7d53 Many have asked us if the information in the plan
will have an effect on the information in the kit. And the answer is emphatically YES! It strengthens the fact
that no-one should pay any Loan Modification Company to help them modify their loan.
The new plan creates clear guidelines for efficient loan modification. Uniform guidelines will both make loan
modification faster and cheaper for servicers (who are normally in the business of processing payments, not
modifying contracts) and will also prevent homeowners from ending up back in complex mortgages with
terms and fees they do not understand.
But make no mistake, the plan doesn't offer any assistance or guidelines on how to start or complete the
process. On the contrary, it asks each homeowner to speak with their lenders! So our kit is very relevant and
timely, because it shows you exactly how to do just that. As a matter of fact, the only change which we can
see which has to be made is to the ratio which we use in the kit.
This is a ratio which we developed, and it will still be relevant to those who do not qualify for the new plan.
But for those who do, everything which the kit teaches should be used, and simply the ratio should be
substituted. This is a fantastic development, since your success should be greatly increased, IF YOU
QUALIFY!
5
For all its flaws, the Obama plan could help you if you are a borrower at risk of defaulting on your loan, or if
are already heading toward foreclosure. The plan will not fully be in place until early March. But you may want
to go ahead and contact your loan servicer now to discuss your options.
The servicer should also be able to tell you if your loan is owned or guaranteed by Fannie Mae or Freddie
Mac. If you got a conventional, plain vanilla 30-year fixed mortgage, chances are you are in that category. So
go ahead and collect all necessary documents to give to your lender, just as the kit suggests.
Find out more here: http://tinyurl.com/28m7d53
6
