Do I have to be behind on my mortgage to qualify for a Loan Modification?

Not necessarily. Many lenders do not require you to be late on your mortgage before they will consider a modification. Some government backed loans may require you to be at least 61 days late before consideration but otherwise, lenders are making it easier for borrowers to qualify for a modification.

How do I know whether I am a good candidate for a Modification?

There a few conditions that must be considered for you to be a good candidate for loan modification.

1) You must be still employed (social security recipients are also considered)
2) You must want to stay in your home and save it from entering foreclosure
3) You must have had a financial hardship occur; making it difficult to keep up with your mortgage payments but can show that things have turned around for the better.

What if I have equity in my home, will I qualify for a modification?

You may. You must first apply to refinance the home prior to applying for a loan modification. The lender will want to see that you do not qualify to refinance before this consideration.

What if I have filed for bankruptcy?

You may still qualify. Government backed loans will allow for loan modification requests. Some conventional loans qualify as well.

I have a fixed rate, will I qualify for a Modification?

You just might! Only until a few months ago, lenders were not considering a modification of fixed rate loans, they were simply modifying ARM loans. But because of the enormous losses they are NOW facing, many lenders are starting to consider modifying fixed rate loans as well.

Will my lender consider a modification on an investment property?

Yes, this is possible. Though many lenders only consider owner occupied homes, we have seen investment properties accepted as well. Some FHA and other government back loans may not qualify as often as conventional loans.

What happens if I am already late on my mortgage?

What typically happens to borrowers who have fallen past three months behind on their mortgage is the likely hood of qualifying for a forbearance agreement and not a loan modification. If you are already late, be careful. The longer you become late, the more legal fees, penalties, escrow, interest and other fees will compound your account which may leave you with a higher payment.

How long does the process take?

It can take as little as two weeks or as long as 12 weeks for a lender to finalize a loan modification request. There are a few factors that determine how long a loan modification request may take. Is the loan government backed? Does the loan have Private Mortgage Insurance? How far behind are you? Who is your servicer?

How American Elite Financial Planners can help?

We know what lenders look for. We know their guidelines and the process. We will work with you to prepare a comprehensive loan modification package. We will run through your case with a fine tooth comb; making sure your financials are not overstated or understated. We will work with you to prepare a well explained hardship letter. We will package up your hardship docs and financials, submit them to the lender and facilitate the loan modification request. We will provide you with free consultations; we’ll discuss your situation, your goals and expectations and determine the best route for you to take.