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What is Loan Modification?
NOT REFINANCING! Loan modification occurs when your lender modifies your current mortgage (same loan you have, only changes are made to the note) in order to work with you and make your mortgage more affordable. A modification to your rate, balance of loan, delinquent fees owed, term of loan etc. can be made by the Lender. This is the best way to help you avoid foreclosure.
- A Loan Modification will change the existing mortgage note and give the client a fresh new start . Accounts will be brought up to date immediately.
- With a loan "modification" you take the mortgage you now have and change the interest rate and payment requirements in order to achieve a fixed rate. A change in rates and payments does not result in the need for a new closing, legal fees, survey, appraisal, or taxes. In contrast, if you "refinance" a loan you'll be required to have a closing and forced to pay a variety of fees and taxes.
- Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other financing alternatives. We show the lender why it would be in the lender's best interest to agree to a new workout arrangement. In turn, the lender will reduce the loan interest rate, reduce monthly payment amounts or change other loan terms to allow for an affordable loan to allow the homeowners to avoid foreclosure.
Equity Financial Lending Corporation brings the two parties of problem loans together to mutually agree to a workout that creates new and better loan terms which are affordable and realistic. The hope is that the new loan will enable the borrower to meet their obligations. With our detailed, personalized financial analysis, this hope becomes a reality. Our clients accept the loan that is affordable to them based upon their current financial situation without the worry of another foreclosure.
HOW DOES IT WORK?
Equity Financial Lending will review the alternatives available to allow you to keep your home. The key to avoiding foreclosure is you! Through open communication with our loss mitigation specialists, we can try to help you cure your mortgage default without foreclosure.
In general there are four options available to a homeowner in distress:
1. MODIFICATION: In certain circumstances, an investor may allow us to add the delinquent amount to your loan balance or temporarily reduce the interest rate as well as your principle amount to assist you in curing the default and restoring your credit status.
2. FOREBEARANCE:A forbearance Plan is a repayment agreement between you and your lender. We will review documentation supporting your monthly income and expenses. We will develop a plan and place a proposal in writing providing for payment of one full monthly payment and a portion of the delinquent amount due on your account. The objective of the plan is to allow you to cure your default over a period of time, reinstating your mortgage, while allowing you to maintain your normal monthly living expenses.
3. PRE-FORCLOSURE SALE: Equity Financial Lending frequently works with homeowners who due to a change in employment or other life event(s), can no longer afford their home. The decision to sell your home under these circumstances is difficult; in addition, fluctuation in real estate markets may leave you in a situation where you have little or no equity. If this is the case we may be able to assist in the sale of your home.
4. DEED IN LIEU OF FORECLOSURE: In the event you have decided you can no longer afford your home and you do not want to go through the marketing efforts or foreclosure, you may voluntarily return the property to the investor. | 
