Home Loans and Support

Loan Modification Resource Guide

This is the LoanSafe loan modification resource guide. This page is dedicated to help educate you about the loan modification process with free articles, videos, podcasts and links to free help.

If you need more comprehensive professional mortgage help along with example forms, hardship letters, income and expense sheets in a downloadable format, then I highly recommend that you purchase our special Loan Modification E-Book called “Saving the Dream” for only $99.  The manual is written in a basic fashion and it explains in great detail how to process a loan modification from start to finish. We have went through a great effort to describe the numerous types of home loan resolution services as well. This e-book has been updated with all the latest information for 2014.(Coming Soon)

About LoanSafe.org - LoanSafe was founded in 2007 and is the first website in America to help homeowners for free with their mortgages. For the last 7 years we have helped tens of thousands of homeowners with their mortgages. Our great work has been featured in the New York Times, LA Times, Fox Business and many other media publications.

What is a loan modification?

This is also referred to as a loan workout and it is when your current lender agrees to modify (change the terms) of your existing mortgage in order for you to afford the monthly payments and avoid foreclosure. When they modify your loan, this means you still have your original mortgage, but that your servicer either lowered your interest rate so you now can afford your monthly payments and or placed any late payments that you may owe on to the principal balance (the total amount owed on the loan).

In most all cases, your mortgage servicer will generally only lower the interest rate and possibly extend the term of your loan. Principle reductions rarely happen. So, if you’re just looking to knock your $500,000 mortgage down to $300,000 because that is all your home is worth, you need to understand that it’s probably never going to happen!

It is really as simple as that! The most difficult part of obtaining one is dealing with your uncooperative mortgage servicer and going through the long, crazy and drawn out process which may take from 6 months up to 2-3 years. Yes, I have seen some homeowners fight for meaningful mortgage help for 3 years and some are still fighting. You need to get educated and what you need to do most is prepare yourself mentally for one the biggest and longest fights of your life because your mental state as a huge factor on if you will be successful or not.

How do I know if I qualify?

A mortgage modification generally occurs when both parties (borrower and lender) to a problem loan mutually agree to workout the issues by creating new and better loan terms. The hope is that the new improved mortgage will enable to the borrower to meet their obligations and avoid foreclosure.

The determining factors that your lender will look at are:

  1. Nature of Hardship Causing Your Mortgage Problems
  2. Ability to pay
  3. Amount Owed
  4. Equity in the property
  5. Future financial situation
  6. What is better for them? To foreclose or pursue a loan workout with you and or modify your loan. Meaning which approach will best benefit the lender in the long run.

Bottom line, you have to have the ability to pay and some income coming in. If you don’t, then most likely your lender will suggest a short sale.

ARTICLES:

Learning how a loan modification works

13 tips to get your a loan modification in 2014

Will a loan modification stop foreclosure?

Homeowner Rights While in Foreclosure

Can I get a loan modification if my mortgage is not behind?

Loan modification pros and cons

How long does a loan modification take

What happens if I stop paying my mortgage?

How To Write a Hardship Letter For a Mortgage Modification

Sample Loan Modification Hardship Letter

Does a loan modification affect your credit score?

What does loss mitigation mean?

What does an underwriter do during a loan modification

Can I Do Modification on My Jumbo Loan?

What is referred status when applying for a mortgage loan modification?

Can I Sell My Home During a Loan Modification?

What do I do if my loan modification is denied?

How many times can a loan modification be done?

Warning Signs of Loan Modification Fraud

Settle Your Second Mortgage for Pennies on the Dollar

My house is going through foreclosure, when do I move?

GET HELP IN THE LOAN SAFE FORUMS:

* Get free online mortgage assistance and search for your mortgage servicer in the LoanSafe Mortgage Advice & Loan Modification Forums

PODCASTS:

Loan Mod Help Center’s Michael Nazarinia – LoanSafe Radio #1

LINKS TO FREE GOVERNMENT HELP:

Can’t get the help you need and deserve? FIGHT BACK!

Department of Housing and Urban Development

Department of Justice (DOJ)

Federal Housing Administration(FHA)

Federal Trade Commission (FTC}

Internal Revenue Service (IRS)

Office of the Comptroller of the Currency (OCC)

More Links to Help:

TESTIMONIALS

"Hello Moe, I just wanted to tell you, your website has saved my life (literally), I stumbled on your site in the middle of losing my home, I was able to network with people going through the same thing as I am. I didn't feel alone anymore, I have tried to give back and counsel those that haven't walked in my shoes yet. We hear so much about what is wrong with America, I just wanted you to know, you are whats "right" with America."

Nina Mitchell
Loansafe & MoeSeo Inc. © 2014 | LoanSafe.org is not a bank, lender, mortgage broker, law firm or affiliated with the US Government. Privacy Policy