Frequently Asked Questions about Loan Modification
What is a loan modification?
A loan modification is a permanent change to one or more terms of your home mortgage loan, such as your interest rate, your principal balance or how many years you have to repay your loan.
The general goal of a loan modification is to make your mortgage more affordable, so you can keep up with your mortgage payments and your lender won’t foreclose on your home.
What is the difference between loan modification and refinancing?
In a refinance, you are not making any changes to your current home loan but rather taking out a new mortgage loan to pay off your current home loan. Your new mortgage will often carry a different monthly payment and interest rate than your current mortgage. You may refinance with your current lender, or you may find a different lender to do your refinance.
In a loan modification, unlike a refinance, you’re not borrowing any more money or taking out any new loans. Instead, you are negotiating with your current lender to adjust the monthly payment, interest rate or other terms of your current mortgage.
How do I qualify for a loan modification?
Just give us a call. We will ask you a few simple questions and then send your information to a New Hope Mortgage Solutions Loss Mitigation specialist so they can pre-qualify you and determine whether or not they think they will be able to help you.
There is no set minimum credit score required to qualify. The main considerations are whether you are committed to keeping your home and whether you will be able to afford the new lower mortgage payments on your modified home loan.
There is never a charge to apply or find out if you qualify. If we determine that you do not qualify for our loan modification program or if our attorney feels you do not qualify we will tell you before the attorney's retainer is taken and before we take your case.
Can I still qualify for a loan modification if I owe more than my house is worth? What about if I don’t have a great credit score?
Yes and yes!
There is no set minimum credit score required for a loan modification.
And unlike a mortgage refinance, a mortgage loan modification does not require that you have any equity in your home. In fact, our programs are specifically designed, in part, to help homeowners like you who may be “under water” on their home loan, owing more than their house is worth and unable to refinance into a new mortgage loan with a lower interest rate and lower monthly payments.
How does the loan modification process work?
All it takes to get started is a quick, simple phone call.
Give us a call for your free, no-obligation advice. We will ask you a few basic pre-qualifying questions about your current mortgage and your individual circumstances; then send your information on to our network of independent attorneys.
Licensed, experienced attorneys in your state will review your information to determine whether they think they will be able to negotiate a loan modification for you. We will be able to let you know within 24–72 hours whether you qualify for our loan modification program.
There is never any fee to find out if you qualify. We will not charge you an application fee just to tell you if we cannot help you.
Once you qualify, it is completely up to you whether or not you decide to enroll in the loan modification program. There is never any obligation to enroll.
If you do not qualify or you simply decide not to enroll in our loan modification program, you pay nothing.
When you enroll, one of our independent attorneys will contact your mortgage lender to begin the negotiation process for modifying your home loan. Typically, we will be able to negotiate your loan modification for you within 30–90 days. Call New Hope Mortgage Solutions and let us work out a new solution for you! 1-866-611-7725
