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Magnum Inspections Inc. |
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"Serving South Florida since 1994" (954) 340-6615 |
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Magnum Inspections Inc. |
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"Serving South Florida since 1994" (954) 340-6615 |
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Through a marketing agreement with MAC (The Money Advise Center), Eric Van De Ven has the authority to help struggling homeowners in the following areas. Loan Modification, Debt Settlement, and Foreclosure Defense.
Loan Modification
Loan Modification is one of many loss
mitigation options available to borrowers (and lenders) in
or approaching foreclosure situations. Specifically, a loan
modification is an alteration to an existing loan made by a
lender in response to a borrower’s long term inability to
repay the loan. Loan modifications typically involve a
reduction in the interest rate of the loan, a reduction in
principal, an extension of the length of the term of the
loan, a different type of loan or a combination of the
three.
The Lenders Options
Lenders are generally open to modifying a loan when the cost
of doing so is less than the cost of default. Consider that
a lender’s board of directors has to answer to its
shareholders. In today’s troubled economy, less is better
than more loss. If the board can preserve the security of
its principal investments – even if the investment isn’t as
rich as initially believed or if the return on the
investment is delayed – the long term viability of the
lender is at less risk than if more significant loss is
incurred.
Loan Modification is only one of many loss mitigation
options. The options can include a Reinstatement or
Repayment plan. This just means that you add the
amount you are behind on the Mortgage to your monthly
payment until the negative amount has been repaid.
This was the initial way lenders were doing Loan
Modifications and most borrowers in this type of program
have defaulted again in a short period of time. The
bank can also allow you to continue making monthly payments
and just add the amount you are in arrears to the end of the
balance.
The bank can also use a Forbearance Agreement which will
allow the forgiveness of payments for a short period of time
if the loss of ability to pay is only going to be for a
short time.
Many homes today are going through what is known as a
Pre-Foreclosure or Short Sale. This is where the
lender agrees to accept the amount of proceeds from a sale
as satisfaction of the loan even if proceeds are not
sufficient to cover the entire loan balance. Many
times the banks are still requiring the borrower to be
responsible for a portion of the shortage.
Deed-In-Lieu of Foreclosure is usually the final option
prior to foreclosure proceedings. This is where the
borrower deeds the property to the lender to keep from
running up additional expenses related to a lengthy
foreclosure proceeding.
Who is eligible for a Loan Modification?
If both of these two factors are not present, lenders are not likely to be willing to talk about loan modification. However, if the lenders investment is at risk and the likelihood of additional expense and/or loss is imminent, most lenders are currently willing to discuss a loan modification. The Process The process of getting the request granted for a loan modification is basically no different than the process you went through to get your original loan. What we will do here is explain the documents necessary to create a Loan Modification package, the order that documentation must be presented in the package and the best way to present your case so the underwriter will take your case seriously. Remember, all of the banks are receiving thousands of requests on a daily basis and your package must stand out to get the bank to respond in a reasonable amount of time.
Please call for further information.
Phone: (954) 340-6615 E-Mail: ev@magnuminspections.com |
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Copyright Magnum Inspections Inc. 1994-2010--All rights reserved |
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