Loan Modification Myth Questions

1.  Loan Modification & Foreclosure Prevention
Having Trouble Making Your Mortgage Payment?
 
Let Us Help You Evaluate Your Situation
Every homeowner's circumstances are different. If you're behind on your mortgage, experiencing financial hardship, concerned about foreclosure, or simply unsure what options may be available, the first step is understanding your complete situation.
 
Fill Out Our Confidential Evaluation Form click here
 
Provide us with some basic information about your mortgage, property, income, current payments, financial hardship and goals so we can better understand your circumstances and help identify options you may want to explore.
CLICK HERE TO FILL OUT THE FORM & EVALUATE YOUR SITUATION
 
Don't Wait Until Your Options Become More Limited
The sooner you review your situation, the more time you may have to understand your available choices.
Submitting an evaluation form does not guarantee a loan modification, refinance, foreclosure prevention, or other particular outcome and does not stop or postpone foreclosure proceedings. If you are facing foreclosure, continue communicating directly with your mortgage servicer and pay close attention to all notices and deadlines.
 
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If you're behind on your mortgage, facing a financial hardship, or concerned about foreclosure, don't ignore the problem.
 
Free Foreclosure & Housing Counseling Resources

• Get Help From Trusted Government & HUD-Approved Resources
• If you're having difficulty making your mortgage payments, have received a Notice of Default or Notice of Trustee's Sale, or are concerned about foreclosure, you don't have to evaluate your options alone.
• In addition to contacting your mortgage servicer, these official resources can help California homeowners understand their options.
• HUD-Approved Housing Counselor
• HUD-approved housing counseling agencies can provide information about mortgage delinquency, foreclosure prevention, loss-mitigation options and working with your mortgage servicer.
• Counselors can help you better understand the options Depending on your mortgage servicer, loan type, financial circumstances and stage of delinquency, there may be options available to help you address the situation.

 
The Earlier You Review Your Options, the Better
Possible solutions may include a loan modification, repayment plan, forbearance, refinance where available, sale of the property, short sale, deed-in-lieu of foreclosure, or other loss-mitigation options.
 
Every homeowner's situation is different.
CLICK HERE TO REVIEW YOUR OPTIONS
 
What Is a Loan Modification?
A loan modification is an agreement with your mortgage servicer that changes one or more terms of your existing mortgage.
Depending on the loan and available program, a modification could potentially involve changes to:

• Interest rate
• Monthly payment
• Loan term
• Treatment of past-due amounts
• Principal forbearance or other permitted loss-mitigation features

A loan modification is not a new mortgage and approval is not guaranteed.
Your mortgage servicer generally reviews your financial information and determines whether you qualify under the applicable investor, insurer, guarantor or servicing guidelines.
 
5 Important Questions to Consider
 
1. Has the Foreclosure Process Already Started?

• If you've received a Notice of Default, Notice of Trustee's Sale, foreclosure notice, or other communication from your mortgage servicer, timing can be extremely important.
• Do not assume that applying for assistance automatically stops a foreclosure.
• Contact your mortgage servicer immediately to determine your current loan status, deadlines and available loss-mitigation options.
• Don't Wait Until the Last Minute.
• The sooner you understand your situation, the more time you may have to evaluate available alternatives.

 
2. What Does Your Complete Financial Situation Look Like?
A mortgage servicer reviewing a loan-modification request may consider information such as your:

• Income • Monthly Expenses • Mortgage Payment • Other Debts • Assets • Financial Hardship
• Rather than assuming that you will or will not qualify, gather accurate financial information and determine what options your servicer makes available.

 
3. Is Your Financial Hardship Temporary or Long-Term?

• Understanding the cause and expected duration of your hardship is extremely important.
• Ask yourself:
• Has my income temporarily decreased?
• Has my income permanently changed?
• Can I realistically afford the home going forward?
• Will my financial circumstances improve soon?
• Would a modified mortgage payment be sustainable?
• The objective should not simply be to postpone the problem. It should be to identify a solution that makes sense for your longer-term financial circumstances.

 
4. Is Keeping the Home Your Best Option?
For many homeowners, keeping their home is the first priority.
If keeping the property is financially sustainable, ask your mortgage servicer about available home-retention options.
However, if the mortgage is no longer affordable, it may also be appropriate to understand alternatives before foreclosure becomes unavoidable.
Depending on your circumstances, these could include:

• Traditional sale
• Short sale, if approved
• Deed-in-lieu of foreclosure
• Other servicer-approved alternatives

Understanding an option does not mean you have to choose it.
The goal is to know your choices before making an important financial decision.
 
5. Have You Reviewed All Available Options?
A loan modification is only one potential foreclosure-prevention solution.
Depending on your circumstances, options may include:
 
Loan Modification

• Changes certain terms of your existing mortgage if approved by your servicer.

 
Repayment Plan

• Allows eligible homeowners to repay past-due amounts over an agreed period.

 
Forbearance

• May temporarily reduce or suspend required mortgage payments for eligible borrowers experiencing qualifying hardship. The missed amounts generally are not automatically forgiven.

 
Refinance

• In certain situations, homeowners who can qualify may be able to replace their existing mortgage with new financing.

 
Traditional Home Sale

• If sufficient equity exists, selling the property may allow the homeowner to pay off the mortgage and potentially retain remaining equity after applicable costs and liens.

 
Short Sale

• If the home's sale proceeds will not be sufficient to satisfy the mortgage debt, the servicer may agree to a short sale, subject to approval and applicable requirements.

 
Deed-in-Lieu of Foreclosure

• Under certain circumstances, a servicer may accept a voluntary transfer of the property instead of completing a foreclosure.

 
Do You Have Equity in Your Home?
Before Considering a Short Sale, Find Out What Your Home Is Worth. Click here
 
If your property has appreciated, you may have more equity than you realize.
A homeowner with sufficient equity may be able to sell through a traditional sale, satisfy existing liens and potentially retain remaining proceeds after applicable expenses.
 
KNOW YOUR HOME VALUE BEFORE MAKING A DECISION
CLICK HERE TO REQUEST A HOME VALUE REVIEW
 
Beware of Foreclosure Rescue Scams
Homeowners experiencing financial hardship can be targets for scams.
Be cautious of anyone who:

• Guarantees they can stop foreclosure
• Guarantees a loan modification
• Tells you to stop communicating with your mortgage servicer
• Tells you to send your mortgage payment to someone other than your servicer without verified authorization
• Pressures you to sign documents you don't understand
• Asks you to transfer title to your property as a supposed foreclosure solution

You can contact a HUD-approved housing counselor for independent foreclosure-prevention assistance.
 
Don't Ignore Mortgage or Foreclosure Notices
If you're having difficulty making your mortgage payment:
1. Contact your mortgage servicer promptly.
2. Ask specifically about available loss-mitigation options.
3. Gather your income, expense and hardship documentation.
4. Keep copies of all correspondence and documents.
5. Pay close attention to foreclosure and response deadlines.
6. Consider speaking with a HUD-approved housing counselor and, when appropriate, a qualified attorney.
 
Need Help Understanding Your Mortgage and Property Options?
 
MGB Financial Services, Inc can help you review your mortgage financing and home-equity situation and explain financing alternatives that may be available.
If selling the property is being considered, a licensed real estate professional can separately help you evaluate the property's market value and potential sale options.
CALL 562-809-2643
California Properties Only
 
Important Disclosure
This information is provided for general educational purposes and is not legal, tax, credit-repair or foreclosure-prevention advice. Loan modifications, forbearance, repayment plans, short sales, deeds-in-lieu and other loss-mitigation options are subject to mortgage-servicer, investor, insurer or guarantor approval and applicable requirements. No particular outcome is guaranteed.
If you are facing foreclosure, contact your mortgage servicer promptly. Foreclosure laws and deadlines vary, and submitting a request for mortgage assistance does not necessarily stop a pending foreclosure. Consider contacting a HUD-approved housing counseling agency or qualified California attorney regarding your individual circumstances.