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Loan Modifications - Frequently Asked Questions
In simple terms, what is
a loan modification?
A loan modification is making a permanent change in one
or many terms of your mortgage. It allows the loan to be
reinstated and adjusts the payments to something you can
afford.
What is your success rate?
Exceptionally great. Storto and Finn is real estate
attorneys with a proven track record of successful
negotiation for our clients. We are not a processor or a
person working out of the home guessing how to do this
right. The law firm is trained, licensed legal
professionals with years of experience in real estate
law.
How long does this take?
This depends if you have an FHA guaranteed loan
involved. Assuming you do not, you should see a solution
in about 2 weeks. If you do have an FHA loan, then it
could take a couple months. Lenders know that since you
are in the process of the solution to your situation
they are usually acceptable with halting foreclosure and
selling the home. You are even able to skip a mortgage
payment since this is put back into the new loan.
Why not do this myself?
Experience and where you are mentally right now.
Most lenders do not have the experience themselves and
typically want to just push through loan modifications
of the customers by cookie cutter, sticking to the
typical way they have done each modification.
As employees, they have a
work load and want to see this wrapped up even if it is
not in your best interest to do it the way they want. A
great deal of time lenders simply want to have the
property foreclosed since this is at times less work on
their part.
Right now, any lender
that says they will not foreclose on your property will
be all you need to hear and not look at your overall and
long term best interest. We do not have the emotional
connection and therefore, at an arms length, can protect
your best interests and make sure you get the best
possible result.
Can I include legal expenses in my loan mod?
Yes. You can include all legal fees and costs into
the modified principal balance.
Does my lender have the right to do an interior
inspection of the property?
Yes they can conduct any reviews to make sure the
property does not have a condition that would impact
your ability to support the modified mortgage payment.
What happens to the late charges my lender is
assessing?
Typically these are waived.
How does the lender look at my income to support the
adjustments of my debt?
Simply stated, they look to see if you can support
the new payments and dfo not have the ability to catch
up the old payments.
How has the government helped me with my loan
modification?
The government has allocated $75 billion dollars to
subsidize lenders who offer loan modifications to their
customers. Lenders now have a strong incentive to assist
you and even you have an incentive... a $5,000 credit to
your loan balance.
Do I have to be late in my payments to qualify?
No but you have to show you are about to be in
trouble because of the interest rate increase and you
will not be able to afford your loan under those
circumstances.
Will this help me stop my foreclosure?
Yes it will. The bottom line is that both parties
wins if you do a loan modification but also both parties
lose if you do not.
I am worried about my missed payments. What
happens with that?
Your late payments gets added to your new loan and
spread out over the course of the new loan term.
The President is backing these plans?
Yes, President Obama's Homeowner Stability and
Affordability Plan has been established to do just that.
Isn't it time you did a
mortgage modification in Illinois now?
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