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Loan Modification - Frequently Asked Questions (FAQ's)

To help you better understand loan modification, here are some of the most commonly asked questions from the many cases we’ve successfully handled.

Let’s start with the basics…

(Click the following questions to learn more)

1. What is loan modification?

Banks reduce your payment by reducing interest rates, principle balance and/or re-constructing the terms.
It's NOT a refinance and there is NO CREDIT QUALIFICATION.

2. Who needs a Loan Modification?

Many homeowners already are at the financial edge:

  • More than 20% of homeowners are upside down on their mortgage.

    - Zillow.com May 2009

  • 43% of American households spend more than they earn each year.

    - Homeownership Preservation Foundation data of 60,000 homeowners

  • 52% of employees live paycheck to paycheck.

    - The MetLife Study of Employee Benefit Trends

  • 60% of homeowners wish they understood the terms and details of their mortgage better.

    - Freddie Mac/Roper poll of 2,031 U.S. homeowners

  • 60% of homeowners delinquent in their mortgage payments are not aware of services that mortgage lenders can offer to individuals having trouble with their mortgage.

    - Freddie Mac/Roper poll of 2,031 U.S. homeowners

3. Why would a bank modify my loan?

Banks are faced with more foreclosures than they can handle.

This year-to-year comparison shows you how the number of foreclosures are increasing nationwide:

  • 2006 - 696,000
  • 2007 - 1.2 Million
  • 2007 - 3.3 Million

The bank loses less money lowering your interest rate and mortgage balance than foreclosing.

In a Foreclosure:

  • Typically, banks get 40 cents on the dollar.
  • Significant cash reserves against bad debt are required.
  • Negative reports are sent to shareholders and the bank experiences loss of borrowing power.


    • 4. I am several payments behind. Is it too late to save my home?

    No! As long as we have at least 30 days before a foreclosure auction, we can help.

    5. I am current on my mortgage, do I qualify?

    Yes! If you are experiencing financial hardship you may be qualified. Banks do not require you to be behind on your payments.

    6. I have spoken to my bank and they refused to help. Is there still a solution?

    Yes. Many homeowners have faced this exact situation. You would not be the first person to get nowhere with their lender only to be approved for a 20%-50% loan modification. It all comes down to the team you have behind you.

    7. What kind of loans can be modified?

    Any type of loan. This includes: ARMs, 80/20, HELOC, FHA, Rural Administration, VA, Freddie Mac, Fannie Mae, Convention, 1st and 2nd mortgages, Primary Residence, 2nd home, Luxury, Condo, Investment Properties, Commercial and Land.

    We are experts in all of them.

    8. Will this hurt my credit?

    Modification does not damage your credit, going 30 plus days late on your mortgage payment does. It is not required for you to go 30 days late for us to modify your mortgage.

    9. How long does the loan modification process take?

    Typically, 3 to 6 months.

    10. Can I do this myself?

    Would you represent yourself in a court of law?

    Do you know what qualification formula that the banks are looking for in your financial statement?

    Do you know what to say in a hardship letter?

    Do you have 50-100 hours to spend on the phone?

    11. How many loan modification cases have you handled?

    Since January 2008 we have helped more than 1,000 families keep their home.

    Currently we are the #1 loan modification company in Arizona; obtaining more resolves than any other company!!

    We are experts throughout every aspect of the loan modification process and have the success to prove it.

    12. Explain your “No Loan Modification – No Fee Guarantee”.

    The Principles of our company believe that if you do not get a loan modification – no fee should be charged. It’s just that simple.

    There is no reason you should lose your home--you have another option. We’re here to show you the way.
    Get Started Now!