Loan Modification

What is a Loan Modification?


A loan modification involves the mortgage lender working with the borrower to change the terms of the original loan. The “modifications” may include lowering the interest rate, altering the term of the loan, reducing the principal or changing other provisions of the original agreement. Loan modification is typically designed for homeowners who are dealing with severe financial hardship and cannot make their mortgage payments.

The borrower can be current, late, in default, in bankruptcy, or in foreclosure at the time the application for modification is made.

The goal of a Loan Modification through Gateway Consulting is to help you keep your home and to give you a real, meaningful, sustainable, and long-term adjustment to your current home loan that works for your financial situation.

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The Process:

  • Facing a Hardship
  • Missed payment(s)/ Notice of Intent to Foreclose/NOD/NOS
  • Meet for Consultation
  • Submit Loan Modification Package
  • Communicate/Negotiate with Lender
  • Lender Processing
  • Lender Determination/Approval
  • Trial Payments or Re-apply (If denied)
  • Permanent Modification

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***Tips for Avoiding Foreclosure***


If you are unable to make your mortgage payment:

1. Don’t ignore the problem.

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your home.

2. Contact your lender as soon as you realize that you have a problem.

Lenders do not want your home. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender.

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notices of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

 Note:

• It is not necessary to pay a third party to arrange for a loan modification or other form of forbearance from your mortgage lender or servicer. You may call your lender directly to ask for a change in your loan terms. Nonprofit housing counseling agencies also offer these and other forms of borrower assistance free of charge. A list of nonprofit housing counseling agencies approved by the United States Department of Housing and Urban Development (HUD) is available from your local HUD office or by visiting www.hud.gov.

Housing and Urban Development (HUD) Can be reached at: 888-995-HOPE (4673)

Important Websites


http://www.TheGatewayCo.com
Www.Keepyourhomecalifornia.org


Gateway Consulting – California – San Diego – Loan Modification & Foreclosure Specialists