Loan Modification is, by definition, an attempt to modify the terms of an existing loan.  The goal is to reduce a homeowner's monthly mortgage payment.  The most common scenario is a reduction in the interest rate and in some rare cases, a reduction in the principal amount owed is negotiated, but that is by no means guaranteed.  Anyone promising a reduction in principal should be approached with scrutiny as there is an increased risk of fraud.

 The modifications can vary substantially and are negotiated on a case-by-case basis.  The modifications in some cases apply for a specific amount of time, say 3 to 5 years, and in other cases will apply for the life of the loan.

In order to qualify, a candidate must prove financial hardship.  This is done by either providing proof of the hardship or by providing a written explanation of the hardship.  Some examples of hardship are; death, divorce, medical condition, lost of job, reduction of income, etc.  It is important to note that loss of equity or a loss in home value are not qualifying hardships.

Loss of equity and loss of value is something that most Americans are facing at this time.  The banks are suffering those losses along with everyone else. 

The goal of this program is not to prevent loss of equity or value, but to keep homeowners in their homes by modifying the terms of their mortgages resulting in monthly mortgage payments that homeowners can afford.  By doing so, foreclosures are avoided which will result in reduced losses to the lenders and a strengthening real estate market.  Those conditions would help in an economic turn-around and hopefully result in increasing home values over time.

While loan modification is something that homeowners can approach on their own, it is recommended that they get a qualified and experienced professional to assist.  That's where MortgageER comes in.  We have already assisted many homeowners in their quest to keep their homes. 

Our team of professionals come with a variety of experiences, which include; mortgage lending, real estate, accounting and tax advice and preparation.  We are committed to providing our clients with the best possible advise in order for them to make the most informed decisions about their homes and personal direction.  Please let us know how we can help.