FAQs
Allow Us to Answer Questions We’re Asked the Most
1. What is a loan modification?
A loan modification can be a temporary or permanent change to your existing mortgage note that may reduce your interest rate, allow you to defer payments, extend the term of your loan or reduce your principal balance. This may also include converting your mortgage to a fixed rate.
2. Am I a good candidate for loan modification?
If you are a couple of mortgage payments late and have an Option ARM mortgage, an adjustable rate mortgage or have suffered a temporary financial hardship, you’re a good candidate for loan modification. If you bought more house than you could afford, you’re probably not a good candidate for a loan modification.
3. Why is this program so inexpensive?
We provide a comprehensive course with full support to obtain a loan modification. In most cases, we do not believe you need to pay thousands of dollars to a loan modification company to do something you can do on your own with the proper guidance and coaching. There are some unique circumstances where a homeowner may need professional assistance, so we have screened dozens of companies and can refer you to a qualified attorney, loss mitigation expert or loan modification company.
4. How much time do I have to modify my mortgage?
Time is of the essence. The longer you wait, the more difficult it can be to modify your mortgage. Unfortunately, time is definitely not on your side but we can assess and give insight into your unique situation when you contact us at 619.269.3602.
5. Should I consider a “refi” (refinance)?
If you have enough equity in your home and your credit is still good, a refinance may make sense; however, a loan modification can often accomplish the same, if not better, outcomes for less money. Likewise, if you have a significant amount of equity in your home (more than 50%) and you are old enough (62+), you may be a good candidate for a “reverse mortgage”.
6. What is the Hope Now program?
Hope Now is an alliance between HUD-approved counseling agencies, investors, lenders and service providers that offer counseling services to distressed homeowners.
7. What programs does FHA have available?
FHA is an insurer, not a lender, that insures programs such as reverse mortgages, Section 203(k) program home rehabilitation loans, low down-payment purchase programs and even “short refis”.
8. How important is a hardship letter?
It depends on the lender. For some lenders, it’s very important (never underestimate the “human element”), to other lenders it’s just something they check off their list. Oftentimes, a good cover letter that pulls all the elements of your application together can be more important than the hardship letter.
9. Can you explain the foreclosure process?
The foreclosure process is as follows:
Pre-foreclosure: You’ve missed a payment or two, but you can still make up the payments to the lender. The lender will still accept late payments.
Foreclosure notice or Notice of Default (NOD): The lender publishes the NOD in the paper and records the NOD with the county. In order to cure the default, you generally have to make a lump sum payment to the lender that covers arrearages, late fees and attorney fees. Generally, you will receive an NOD after being approximately 90 days delinquent.
Notice of Sale (NOS): Approximately 90 days after the bank has filed the NOD, the bank will issue an NOS. This means a trustee sale date has been made, which could be within in just seven days or less. At this point, the only way to stop the foreclosure is to cure the default by paying everything the bank says you owe, filing a bankruptcy (which grants an automatic stay) or by filing an injunction if you have grounds to do so.
Redemption period: After your home has been sold, some states provide a certain period of time in which you can get your home back by repurchasing it.
Eviction: After the redemption period (if applicable), you will be given an eviction notice and a specific amount of time to vacate the home. In some instances, you will be given an offer of “cash for keys,” meaning the bank will give you money to vacate early. Some banks will do this to get you out faster and/or help ensure that you don’t do anything to harm the property.
10. If I’m in foreclosure can this course still help me?
Yes. Although time is of the essence and you should be prepared for obtaining the assistance of an attorney or other professional.
11. What if I think I’m a victim of predatory lending?
In the Loan Modification Do-It-Yourself course, we discuss predatory lending and potential remedies. There are measures you can take, such as having your loan audited, which is a service that The Homeowner Defense Network performs, or you can enlist the help of an attorney.
12. How long does this loan modification course take to complete?
It’s up to you and how much time you are willing to put into it. The course is nine lessons that you should be able to complete in less than a week.
13. What are the possible outcomes of a loan modification?
- Reduction in interest rate
- Reduction in principal
- Extension of the term of your note, thereby lowering your payment
- Reinstatement of your loan.
14. I’ve heard loan modification is difficult. How will you help me?
We provide you with the tools, insider tips and a step-by-step guide on how to obtain a loan modification.
15. Why are you offering this loan modification program?
Millions of homeowners are being affected by soaring foreclosure rates. Any time a foreclosure occurs, it affects numerous people including the families losing their homes, the local housing market, the local community and neighbors who realize a further erosion of their home value. By offering this program, The Homeowner Defense Network hopes to help reverse the course of the foreclosure crisis.
16. Are there any other resources you can recommend?
Yes, visit the Loan Modification Do-It-Yourself program creator, The Homeowners Defense Network at TheHDN.org .