So what is a loan modification? In this brief outline you'll get a better idea of a loan modification and the loan modification process. A loan modification is the process where the existing loan on a property is modified to accommodate the owners ability to manage the monthly payments. Loan modifications are now being performed on not only residential properties, they're being used to restructure commercial financing as well. Loan modifications were originally limited to modifying the interest on the existing financing, however now banks are more willing to make far more concessions. The loan modification process now often times wraps the missed mortgage payments, anything in arrears, and missed tax & insurance payments to a separate entity placed on the end of the newly modified financing to be payed following the current mortgage. 

By now it is no secret that the housing market has been hit extremely hard by the current economic downturn. In fact, many believe that it was the irresponsible lending practices that were exploited in the early 2000's, including the sub prime mortgages and now the 3-1, 5-1, and 7-1 ARM's that were the crux of the now failing economy. No matter how you choose to look at the current housing/financing situation it is overwhelming clear that it remains a persistent problem. The Fed. felt so strongly about this that when the initial stages of the difficulties began to surface they pumped 100's of billions dollars into the banking sector for it to be used to help restructure these now non-performing debt instruments. We are also seeing lenders modifying conventional financing that home owners caught in the current struggling economy are having trouble paying.

This not only provided an opportunity for the besieged home owner it also paved the way for the evolution of the loan modification industry. With so many home owners unable to afford their newly adjusted mortgage payments they struggled with their mortgage costs. Facing foreclosure many of them tried to negotiate with their lenders themselves. Inexperienced in the process the majority of them failed at getting a better outcome, and in fact many fared even worse than when they started. This is where the loan modification companies came in to play and are in part responsible for banks failing to work with individual home owner on their own loan modification. They are a group of professionals that negotiate on behalf of the client and are having a far better outcome. Of course you must be careful in choosing a company to act on your behalf as all loan mod. companies are not created equal. One defining factor that is being required for loan modification companies to do business from state to state now, is that there can be NO upfront costs to the consumer. Our service stands by by this commitment and has from day one. Also, the negotiated settlement has to undergo a trial period, usually three months, so as to avoid further difficulties and ensure that the client will be successful in managing the newly structured payments.

Currently any of the lending institutions that received a portion of the T.A.R.P. monies are expected to modify existing non-performing mortgages for borrowers that are in their inventory.

So if you find yourself in need of this service or have the resources to provide referrals, which include commercial and multiple units, we can help you. If you would like someone to contact you regarding this service, please use the secure contact form by clicking on the the navigation bar link. We do not sell, share or distribute this information in any way.

If you prefer you can contact me conveniently by sending me a message to: mail@patricklacy.com.  Or call Patrick Lacy @860-301-4499. Thank you.