Mentor Loan Modifications
Lower Mortgage Payments...Guaranteed
FAQ
- Q:
- What are the advantages of getting a loan modification?
- A:
- Reduce your interest rate
- Lower your monthly payments
- Fix your interest rate
- Prevent foreclosure
- Get you back on track
- SAVE YOUR HOME
- Reduce your loan balance
- Q:
- Do I have to be in default to qualify for a loan modification?
- A:
- NO…if you are struggling to make a payment, because of a “hardship”, you may qualify.
- Q:
- What are “hardships”...
- A:
- Below is a list that most lenders consider during the qualification process for a loan modification:
- Job relocation
- Decline in refinance
- Divorce
- Failed business
- Reduced income
- Mortgage exceeds the value of your home
- Military duty
- Medical bills
- Illness
- ARM reset
- Q:
- What are the chances of getting a loan modification if I have already received a Notice of Default from my lender?
- A:
- The experienced and qualified advisors at Mentor Loan Modifications will move quickly in order to try to stop the process. Our team of experts will know the required plan of action in order to keep you in your home. It is critical that you understand the urgency and work with us to submit all required documentation.
- Q:
- Is there a difference between a loan modification agreement and a forbearance agreement?
- A:
- Yes, a loan modification is different from a forbearance agreement. A forbearance agreement provides a “short term” reprieve for borrowers who have temporary financial challenges, while a loan modification is a “longer term” solution for borrowers.
- Q:
- If I am qualified for a loan modification, what happens to my adjustable rate?
- A:
- Loan modifications can reinstate your loan fully at a fixed rate.
- Q:
- What information is needed in a typical loan modification financial worksheet?
- A:
- In most cases a loan modification requires a financial analysis of all of your total household expenses. We will negotiate the new payment based on what you can afford - based on your total household income.
- Q:
- Will a loan modification reflect negatively on my credit?
- A:
- No, the loan modification itself will not. It will eventually improve your credit, since your debt service ratio will be lower as a result of your newly negotiated payment structure. After the modification is complete, your payments will be lower and more affordable thus assisting you in remaining current. Successful on time payments will assist your credit score in rising over time.
- Q:
- I have negative equity in my home and it has prevented me from re-financing in the past. Will it also prevent me from modifying my loan?
- A:
- No, Having negative equity does not prevent you from qualifying for a loan modification, unlike re-financing. In fact it actually helps since the lender will have even more motivation to help you.
- Q:
- I have bad credit. Does this prevent me from qualifying for a loan modification?
- A:
- No, a low credit score should not influence your qualification for a loan modification…unlike re-financing.
- Q:
- How long does a loan modification generally take to complete?
- A:
- Times vary greatly from one lender to the next. It generally should take from 6-8 weeks. Others can process documentation and have approvals back sometimes within a couple of weeks.
- Q:
- If my property is foreclosing, can I still modify my loan?
- A:
- Yes, some lenders will grant homeowners time to request a loan modification and pull the property out of foreclosure. Lenders do not want your home, but not responding to notices and making zero effort to help save your home is what moves lenders to foreclose.
- Q:
- What happens to the past due balance when I modify?
- A:
- The past due balance or balance in arrears can be wiped out by the lender - or added to the balance of the note and the new rate is calculated at the new balance. Some lenders require a percentage of the amount in arrears to be paid in order to start negotiations for the loan modification….but all lenders are adjusting their policies on a go forward basis depending on individual circumstances.
- Q:
- What rate will I receive after my modification?
- A:
- The rate borrowers receive varies from lender to lender - but most are established from the financial information obtained. Lenders will determine the rate based on what amount is realistic to pay (somewhere in the 31-38% debt to income range is a common benchmark).
- Q:
- Should I modify my loan even if I owe more that the house is worth?
- A:
- In most cases the answer is yes. If you decide you want to sell your home we can assist you in a short sale (See Short Sale Tab)
- Q:
- Can Mentor Loan Modifications help me with properties I’m not living in or currently renting out?
- A:
- Yes
- Q:
- Do you work with only certain lenders?
- A:
- We work with ALL lenders, but the results vary with each one. The results depend not only on your lender, but also on the specifics of your circumstance.
- Q:
- What disqualifies a client from your program?
- A:
- Mentor Loan Modifications cannot help people who have no source of income and / or have no proof of hardship.
- Q:
- Do I need to pay for your services in advance?
- A:
- No, you do not pay us a fee until we are prepared to submit your COMPLETE documentation to the lender. If we do not obtain a loan modification, then we will REFUND your fee in its entirety.
