What The Loan Modification Process Really Is:

When you purchased your home, 3 things happened. You received a Deed (your proof of ownership), you signed a Note (the agreement to pay back monies borrowed with previously agreed upon terms), and you signed a Mortgage (the agreement to secure the lenders note with the house).

So in reality, whether you call it a loan modification, a mortgage modification, a mortgage restructuring, or a workout plan, the loan modification process is actually your lender only agreeing to alter the terms of your note. Lenders are typically open to consider a modification should you happen to be experiencing a permanent reduction in income, a documented increase in payment that would be unaffordable, and/or a default and ultimately a foreclosure of your home is eminent.

Modifications typically results in a temporary or permanent changes to some or all of the following: your notes rate, it’s term, the amount they base the principal and interest payment on, and ultimately the amount of your monthly payment.

Our goal during your loan modification process is to help you get a reduction of your monthly mortgage payments to the standard accepted guideline of 31% of your gross income. This is the standard accepted percentage used in determining how much a typical borrower should be paying for principal, interest, property taxes, hazard insurances, and association fees (if any).