Mortgage Modification

Mortgage Modification

It can be a complicated process to obtain a loan modification and usually requires a lot of documents and following up with the bank. Borrowers can attempt to modify their mortgage on their own but statistics show that 85% of homeowners are denied a modification if they go about it without the help of a trained professional. You also need to follow up constantly with the bank's loss mitigation department to ensure they are doing what they are supposed to be doing. In order to get the best results possible you need someone who knows what to ask for. Loss mitigation departments are trained to get the most amount of money from you as possible. John P. Brooke, Esq. has received formal training from a major law firm that represents banks on how the process works and what the requirements are to obtain a loan modification.

You may be eligible to apply if you meet all of the following:

  •         You occupy the house as your primary residence.
  •         You obtained your mortgage on or before January 1, 2009.
  •         You have a mortgage payment that is more than 31 percent of your monthly gross (pre-tax) income.
  •         You do not owe more than $729,750 on your home.
  •         You have a financial hardship and are either delinquent or in danger of falling behind.
  •         You have sufficient, documented income to support the modified payment.
  •         You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

Some of the steps used to lower your monthly mortgage payments under the program are to:
  1.         Lower your interest rate to as low as 2%;
  2.         Extended the term of the mortgage up to 40 years;
  3.         Defer principal interest free with a balloon payment at maturity; and
  4.         Reduce the amount of principal owed so it reflects the current market value of the home.

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