FREQUENTLY ASKED QUESTIONS

What is Loan Modification?

Loan Modification—With millions of homeowners stuck in toxic adjustable rate mortgages (ARMs), and with no way to refinance out of them, loan modifications are the solution to assist struggling borrowers. A loan modification is when your existing lender modifies your current mortgage (the same loan you already have—the existing note is simply modified) in order to work with you and make your mortgage more affordable (e.g. lowering your interest rate, reducing your mortgage loan balance, forgiving past due payments and delinquency fees, extending the term of loan, etc.).

In the past, loan modifications were only accepted when borrowers were already delinquent; but, now we see them being used sometimes before borrowers go delinquent. Loan modifications are one of the best ways for borrowers to keep their homes and avoid foreclosure.

A Loan Modification changes the existing mortgage note and gives the client a fresh start in managing their home loan—accounts are brought up to date immediately.
With a loan modification, you can take the mortgage you now have and lower (or "modify") the interest rate (as low as 4%), reduce the loan balance (to not exceed 80% of the property value), change the loan type (from adjustable to fixed), and/or extend the term of the loan (up to 30 or 40 years) to establish an affordable monthly payment (less than 32% to 38% of your gross monthly income).
Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other financing alternatives. A Loss Mitigation Consultant shows the lender why it would be in the lender's best interest to agree to a workout arrangement (i.e. loan modification). In turn, the lender will reduce the loan interest rate, reduce monthly payment amounts, and/or change other terms of the loan to make the loan affordable to the homeowners to avoid foreclosure.

EZ Loan Modifiers™ connects homeowners with Loss Mitigation Consulatnats who bring the two parties of the problem loan together to mutually agree to a modification that creates new and better loan terms which are affordable and realistic. The hope is that the new loan will enable the borrower to meet their financial obligations. And, with a Loss Mitigation Consultant's detailed, personalized financial analysis, this hope becomes a reality. Clients accept new loan terms that are affordable to them, and can stop worrying about foreclosure.

Can't I do this myself?

Why should I pay someone else to do it for me?

Of course you can negotiate with your mortgage company yourself. Just as some people act as their own accountants or legal representation, some people are knowledgeable enough about mortgage delinquency that they are comfortable negotiating with their mortgage company.

However, for others phrases like "partial claim", "loan modification" and "special forbearance" are intimidating and confusing terms. People in this category may find dealing with their mortgage company to be a dehumanizing experience as they are shuffled along the assembly line-like process, never sure if the representative they are talking to is truly looking out for their best interests or merely trying to meet their quotas while attempting to keep their talk time low.

EZ Loan Modifiers™ doesn't offer any service to you that you cannot technically perform for yourself. Then why pay a Loss Mitigation Consultant to represent you? There are many reasons we could provide but perhaps an example would be more effective:

When you are on the phone with your mortgage company and they tell you there is nothing that can be done for you, how do you know if this is the truth or if it is simply what the representative chooses to tell you as a result of their inexperience or apathy? The mortgage company representatives you will deal with work in call centers—a low-paying, high-turnover field of employment. Your negotiator will have more experience in mortgage retention than most of these representatives. How many financial transactions are as important to the average person as their home? Much like in any important matter, having the proper guidance and representation can make all the difference in the world. It can save you time, trouble and money.

Does my mortgage company want to foreclose on my property and take my house?

Absolutely not. When a mortgage company forecloses on a property, they almost invariably lose money. They lose even more if they are forced to take ownership of the property. Because of the mortgage company as well as the investors likely lose money on foreclosed properties, there are wonderful ways to avoid foreclosure. This is the good news.

The bad news is that you are really nothing more than a loan number—usually one of millions—to your mortgage company. While not trying to insult your mortgage company, they don't need or want to specifically help you. They simply need to ensure that they meet their numbers. While it may be encouraging to know that their financial interests lie in keeping you out of foreclosure, you should also realize that mortgage companies are some of the largest owners of real estate in the world. This is directly attributable to the sheer number of properties they assume after the foreclosure sale.

What are "hardships" and do I qualify?

Here is an example list of hardships that lenders consider during the loan workout process:

Adjustable Rate Mortgage Reset—Payment Scock
Reduced Income
Illness
Loss of Job
Failed Business
Military Duty
Medical Bills
Job Relocation
Divorce
Marital Separation
Damage to Property (natural disaster or unnatural)
Death
Death of Spouse or Co-Borrower
Incarceration

In The News:

FHFA Announces:

"...a major program designed to greatly reduce preventable foreclosures with a simplified, streamlined loan modification program to get struggling homeowners into mortgages that they can afford."

Picking a Loan Modification Plan:

"Now, keep in mind that this isn't an easy process."

Fannie Mae to Suspend Foreclosure While Streamlined Loan Modification Program is Implemented.

Professor Sanders of the W. P. Carey School of Business:

"...it is of tantamount importance to stabilize the housing and mortgage markets, and loan modification is one of the best tools available to the Treasury,...”