Due to the severe downturn in the Orange County real estate market, and the deep naitonal recession, many  homeowners are finding themselves in financial duress.  Recent reports have shown that over 1/3 af all Orange County homeowners owe more on their home, than the property is worth in today's market.  And mortgage deliquencies are happening at an alarming rate.  Political pressure is being applied to mortgage banks to seek resilotuions in order to reduce the flood of foreclosures.  Some of the many soultions made available by the mortgage banks to homeowners are Loan Modifications, Short Sales, and Deed in Lue of Foreclosure.  This Website offers FREE information and a FREE eBook about Loan Modifications.   

** FREE Loan Modification eBook is COMING SOON ** 

What is a Loan Modification ?: A Loan Modification is a negotiated legal alteration of the terms and conditions of your existing mortgage loan, in order to obtain lower mortgage payments or reduce the loan balance, or both. In today’s declining real estate market in California, refinancing is available to only a select few. Getting approved for a traditional refinance is extremely difficult.

The goal of a loan modification is to change the amount of payment to a level where the Orange County borrower can consistently make their mortgage payment as well as pay other bills.

Why Would a Homeowner want a Loan Modification ? The need for a Loan Modification (sometimes called a Loan Mod) is usually caused by a borrowers inability to make payments in the agreed upon time-frame or because the property is worth less than the borrower owes. If the Homeowner has a little bit of equity in the home or is slightly upside down on the mortgage, and if the Homeowners current income is about 5% greater then their total current expenses, then one should consider a Loan Modification.

On the other hand, if the California Homeowner is upside down on the mortgage by 10% or more, or if the Homeowners income is 10% less then their current expenses, then they should seriously consider a Short Sale.

Why Would a Banks Accept a Loan Modification ? - Mortgage Banks would much rather settle for a Loan Modification then foreclose and take your home back.  On average, Banks stand to lose over 50% if they foreclose, and therefore would rather collect lower payments then none at all.  Banks do not want a mortgage to consume an entire monthly budget. They will take the homeowners entire budget into consideration ie; car payments, cell phone, utilities, credit cards payments, etc.

Who Typically Qualifies for a Loan Modification ? There are 3 basic criteria that most Mortgage Banks use to determine if a homeowner is elligible for a Loan Modification.  These three criteria are 

1. Financial duress of the Orange County homeowner, which has caused, or soon to cause delinquency on the mortgage payments 
2. A valid hardship statement in writing. 
3. Homeowner’s financial information so the mortgage bank can determing if the Loan Modifcation is justified, and also to ascertain if the Loan Modification has a chance of long term success. 

We have provided a valuable Loan Modification eBook, which you can download for FREE. 

** FREE Loan Modification eBook is COMING SOON **

Please Note we do not conduct Loan Modifications. The purpose of this webpage is to provide information to help our clients make educated financial decisions.