Frequently Asked Questions

What is a "Modification"?

A loan modification occurs when your current lender modifies the terms of an existing loan, by any one or a combination of the following: reducing the interest rate and amount of your payment, extending the term (length) of the loan, changing the length of the payment period to a new, specific term (such as ten, fifteen or thirty years), or a combination of some or all of these terms.

What is a "Short-Sale"?

A short sale occurs when you sell your home for less than the amount owed on your property. We negotiate with the lender to accept less than the full balance owed and forgive the difference. In turn, you move away from the house. Due to recent legislation, the tax that you would ordinarily pay in connection with what is called "forgiveness of debt income" is not paid if the property that is the subject of the short sale is your primary residence.

Do I Have To be Behind on My Mortgage?

No. While having been late on the mortgage will not prevent you from attaining a modification neither will being on time. The important thing is that you or your family has suffered some form of hardship.

How Long Does the Process Take?

Every circumstance is different. Typically, the process will take anywhere from several weeks to six months.

Why Will the Lender Agree to a Modification?

Banks are not in the real estate business. A lender's objective is to make sure it gets your monthly payment on schedule so that it can make money from your interest payments. If you or your family are facing hardship and are unable to make the payment then it is in the lender’s best financial interest to do whatever is necessary to help, especially if the property has little or no equity (i.e., you owe more than the property is worth), in which case the lender stands to lose quite a bit.

Do you offer a guarantee?

One of the most common questions asked is about “guarantees”.  The answer to this question is very simply… 

NO! 

Loan Solutions cannot and will not guarantee any particular outcome of an individual case.  Although we are quite successful and have been helping homeowners for years we simply cannot guarantee results.  There are too many variables in each case that can create the outcome.  While many of our competitors will make false promises and “guarantees” in order to get you to pay them we take strong stance against this practice. 

The one thing Loan Solutions WILL guarantee is that we will work diligently and efficiently to find any piece of relief available to our clients.  If it can be accomplished then chances are we can get the job done. 

When looking for help please be cautious in evaluating companies that make false promises or “guarantees".

Why Can’t I Just refinance?

The financial market place has changed dramatically over the last 12 months. It is much harder to qualify for a new loan now than it was last year because of the banks’ tightening of guidelines and not accepting "risk". Loans are made based on credit, debt, income, and loan to value (amount owed compared to the appraised value of the property). If any of those factors are not perfect it has become nearly impossible to attain a loan.

What If I have More Than One Mortgage?

This is very common. We will correspond with all of your lenders and work to attempt to obtain the results you deserve from each of them.

Will This Affect My Credit?

No. Neither the process itself, nor the actual loan modification will affect your credit. However, if you are or have been late, then your credit will already have been affected. The good news is if you are able to complete the process and resume making regular monthly payments that you can afford then your credit will start improving immediately.