Loan Modification - Home Loan Mods

Homeowners across the country are having great difficulty working directly with their bank or lender to try and negoiate a Loan Modification. Value Loan Mods has help 100's of clients Modify their home loan.

On March Wednesday, March 18th we will have a webinar to recruit new agents to market to clients in need of a Loan Modification.

To register and learn how you can become a referral partner click on the link below and register for the Loan Modification Webinar.

Loan Modification Agent Webinar

On March 14th I had the opportunity to interview Carlos Sarmiento, Owner and Chief Negotiator
for Value Loan Mods a Loan Modification company located in Coral Springs, FL. In this interview
Carlos talked about what a Loan Modification is not as well as the issues a homeowner has when
dealing with their lender in an attempt to negotiate a Loan Modification.

We also discussed the the issue with bank or lenders doing a principle reduction for homeowners
that have lost value in their homes due to market conditions, the Obama "Making Home Affordable" program
and Why in some cases you may want to hire a reputable Loan Modification company to negotiate
on your behalf.

To hear the interview in it's entirety go to www.valueloanmod.com.

Thanks,

Mark Bustamonte
573-418-0932 Direct

The first issue we need to address is the statement "a permanent change". In todays market this is not usually the case. Many modifications today provide only a temporary adjustment in interest rate that will gradually increase back to the original rate over a period on time, typically 5 to 10 years.

The second issue is an "affordable payment the mortgagor (homeowner) can afford. This is subject to interpretation. We have seen a high percentage of loan modifications that resulted in default after a 6 month period due to the fact that the lender or bank did not provide enough relief to the borrower. A loan modification that results in $100.00 or $200.00 monthly reduction usually is not sufficient reduction for long term success.

The Federal Government has made several attempts over the year to try and fix the housing market crisis by implementing programs designed to offer relief to homeowners. One such program called "Hope for Homeowners" was a FHA program that was supposed to help 400,000 homeowners refinance into affordable payments. One year later only 12 homes had been refinanced. Other programs put in place have had similar results.

Banks and lenders would have you believe that its as simple as picking up the phone and calling them for advise or assistance. Homeowners have found out that calling the bank or lender is a joke. Must banks or lenders aren't interested nor motivated to offer the homeowner any type of real relief or solution.

I have personally seen the types of offers that are being sent to homeowners that are behind on their mortgage payments and can tell you that there are better deals to be had. The problem is as a homeowner you are trying to save your home by negotiating with the institution that you owe money to and they, for all intent and purpose, have the ability to put you on the street. In my eye's that not a good bargaining position to be in.

The Obama "Making Home Affordable" Program is another voluntary program for the lenders and banks that has homeowners dealing directly with the banks and lenders that they owe money to. This program is a new program and it yet remains to be seen how the banks will respond to the homeowners in need of a Loan Modification. Some believe that this program will provide relief for a limited number of homeowners.

The criteria for this program is very rigid and at the end of the day the lender or bank can make the determination as to whether or not the homeowner qualifies or whether or not you or your property is a worth while risk.