Question:
What is loan modification/mediation?
Answer:
A loan modification is an agreement that is negotiated with your current
lender that changes the terms of your current loan. Lenders are willing
to negotiate when borrowers are facing financial difficulties and can't
obtain other financing alternatives. You must show the lender why it
would be in their best interest to agree to a workout arrangement. If
convinced, a lender may be willing to reduce the loan interest rate,
reduce monthly payment amounts or change other loan terms.
A loan modification generally occurs when the parties to a problem
mutually agree to work out the problem by creating new and better loan
terms. The hope is that the new loan will enable to the borrower to meet
their obligations.
Question:
What items you will need when applying for a loan modification?
Answer:
The homeowner needs to document income and expenses. The gathering of
information is crucial, starting with any correspondence from the
lender. This also includes any correspondence from the lender that
client has not opened. Do not throw away any utility bills, car
payments, insurance, gas, grocery receipts, etc. It can make the
difference between being eligible or ineligible for relief. The lender
may want to see all income and expenses. If the income is very sporadic,
then support your financial situation by showing an average that can be
calculated over time. Explain any gaps of employment and document stated
income with copies of the past 12 months bank statements. Gather at
least two years of W2's and tax returns, plus three to six months of
bank statements for anyone that can produce income documentation.
Collect all mortgage paperwork, statements, and notices and add it to
the file. Gather all bills, including utilities, auto payments, credit
cards, student loans, child support, and medical bills. We also need to
include everything that documents why a homeowner fell behind usually
detailing the financial hardship you are experiencing. An employer's
notification of reduced hours, medical problems, a layoff notice,
invoice for an auto repair or a furnace replacement, a shutoff notice
from a utility, etc. and detailed letter of explanation of your current
financial hardship may be required.
Question:
When does Rate Modifiers begin the process?
Answer:
Once you have fully retained our services, your lender will be notified
immediately and Rate Modifiers will begin the modification process.
However, you are required to pay the complete service fee before your
loan modification is completed.
Question:
What is loss mitigation?
Answer:
It is the process of working out a permanent, equitable, and fair
solution between you and your lender to save your home from foreclosure.
Question:
Can you really stop foreclosure?
Answer:
Yes. We can review your situation and provide a solution to solve your
problem.
Question:
How Do You Stop Foreclosure?
Answer:
We review your unique financial situation and work with your lender to
ensure the best possible alternative to foreclosure. Foreclosure is
really the option of last resort and in almost every circumstance a
better resolution can be achieved.
Question:
I filed for bankruptcy. Can you help me?
Answer:
Yes. We can review your situation and let you know your options, but
must wait until your mortgage has been discharged or dismissed from your
bankruptcy to negotiate with your lender.
Question:
I tried this, but my lender won't budge. Can you still help?
Answer:
Yes. We have noticed that most lenders act this way until we get
involved. We know how to get the bank to settle on fair terms that will
avoid foreclosure. We know who to talk to and what to say. We will use
our connections and experience to get you the best possible solution.
Question:
Why should I use Rate Modifiers to mitigate my loan instead of doing it
myself?
Answer:
Our team has extensive experience in negotiating loans and working with
lenders. We have an impeccable relationship with lenders, who are
usually unwavering in negotiating with the consumer directly. Our team
has extensive knowledge about loan mitigation, modification,
deed-in-lieu of foreclosure and short sale programs.
Question:
Do I have enough time to stop my foreclosure?
Answer:
There is hope right up until the foreclosure sale occurs. But do not
delay; the closer the day gets the more extreme the action needed to
save your home. Every day counts and we can get better results with more
time!
Question:
Will Rate Modifiers stop late fees and interest from accruing on my
account?
Answer:
Rate Modifiers can not stop a lender from adding interest or late fees
to a loan. However, your individual program will allow you to catch up
on any late payments, and all interest and fees will be restructured
into your new payment.
Question:
If I file for bankruptcy, will it save my home?
Answer:
It does not appear that way. The American Bar Association has reported
that 96% of homeowners who declare bankruptcy end up losing their home
to foreclosure. So, it seems that if you declare bankruptcy you will
likely end up with BOTH a bankruptcy and a foreclosure. But, bankruptcy
is an important tool in debt relief and if you believe you need this
option, we advise you seek the council of a bankruptcy attorney.
Question:
Can you help me with my loan type?
Answer:
Yes. It does not matter what type of loan you have, we can help! We
specialize in out-of-court resolutions of government and non-government
mortgage delinquencies for every type of lender, including banks, credit
unions, thrifts, FHA, Rural Administration, VA, Cal-Vet, Fannie Mae,
Freddie Mac, etc.
Question:
How Much Time Do I Have?
Answer:
In this process, time is your enemy! The sooner you act the better a
solution we can achieve. The foreclosure process is usually very quick
and we have encountered many homeowners that did not even know they had
lost their house. So, DO NOT delay!
Question:
What if I can no longer afford my home? Can you help?
Answer:
Yes. If you are certain that you cannot afford your home we have several
options that will minimize your credit damage and forgive the debt. They
include returning the property to the lender or selling it to a third
party.
Question:
How do I find out the progress of my loan modification?
Answer:
You can call us at 866-845-6660 Monday thru Friday from 9 a.m. - 7 p.m.
PST to speak with a customer service representative and get an update on
the progress of your program.
Question:
Can I Just Do This Myself?
Answer:
Yes, but should you? It really depends on the results you want to
achieve. How good would your hair look if you cut it yourself? How would
you do if you represented yourself in court? If you are facing a
foreclosure you want the very best result and we can get that for you!
We have a staff of loan mitigators and attorneys whose only job is to
work with lenders and modify loans, every day, five days a week. By
letting Rate Modifiers do what we do best, you will get better results
with a fraction of the stress. Rate Modifiers knows how to deal with
lenders and have in-depth knowledge about how these institutions work.
We can potentially save you thousands of dollars and free you from a
considerable amount of stress.
Question:
Will I owe money to the IRS for my reduced settlement?
Answer:
Creditors are required to report canceled debts exceeding $600 to the
IRS and you are supposed to report the same as income on your annual tax
return. However, the IRS permits you to write off any "income" from
canceled debts up to the amount by which you were "Insolvent" at the
time. Therefore, unless you have a positive net worth, then you
ordinarily will not be obligated to pay taxes on the forgiven amounts.
Additionally, if you do not qualify as insolvent, non-principal amounts
such as fees accumulated on the account may be deducted from the amount
reported. Consult a tax professional for your specific situation. Refer
to:
www.IRS.gov Publication 908
Question:
What does this cost?
Answer:
We are one of the lowest cost Rate Modification companies around and
offer a great team to help you accomplish your goals of living the
American Dream. Call to speak with one of our counselors or email us and
they will go over all of the payment details with you.
Question:
How Long Does This Take?
Answer:
Once we get the paperwork, we begin right away. Currently, most lenders
are very busy, so we are noticing about 3-6 weeks before a final
settlement is reached.
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