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115 E 57th Street, 11th Floor New York City, NY 10022 Toll Free No. 877-845-8225 Fax: 646-558-4303 Email: [email protected] Web: www.heritusleadtransfer.com
Loan Modification:Offering Your Clients a Way to Keep Their Homes
A loan modification involves a restructuring of the mortgage, i.e. loan, where the borrower's’ payments are adjusted to be more affordable. The loan modification programs aim to help borrowers keep their homes when they are in financial difficulties and are unable to make their payments on time.
Loan modifications are legally possible under the guidelines of the federal government’s Home Affordable Modification Program or HAMP
There are several ways you can help your clients modify their mortgage terms so that their monthly payments are lesser than 33% of their income. One way is to adjust the interest rate of the loan, while another is to extend the loan period. In turn, the lender receives incentives from the government for allowing such a modification.
Loan Modification is an ideal option for borrowers whose incomes suddenly drop
Lender representatives are required by HAMP rules to inform them of loan modification before foreclosing a loan.
Even when you, as a lender, know that a client is not going to be approved for a loan modification, the federal government rules require you to inform borrowers of this option. However, it is up to the borrower, in the end, to decide whether to apply for loan modification or not.
Temporary loan modification is a possibility. Run a campaign to inform your clients of the benefits of a loan modification. After all, information is power, and it may help your clients make informed decisions, especially when they are unable to make their monthly payments.
Lender representatives are required by HAMP rules to inform them of loan modification before foreclosing a loan.
Even when you, as a lender, know that a client is not going to be approved for a loan modification, the federal government rules require you to inform borrowers of this option. However, it is up to the borrower, in the end, to decide whether to apply for loan modification or not.
HAMP is just one of the available programs that allow mortgage relief for homeowners
The federal government’s Making Home Affordable and the HAMP programs are distinctly different. In fact, HAMP is a part of the Making Home Affordable program. There are other programs as well, including the Home Affordable Refinance Program (HARP), and Home Affordable Foreclosure Alternatives Program (HAFA). HAMP focuses on making loan terms more sustainable and affordable in the long run.
A loan modification can affect a borrower’s credit score.
Know that the impact on a borrower’s credit score can depend upon the kind of program he/ she signs up for. How you report the account can also affect the borrower’s credit score. However, it is also entirely possible that modification programs endorsed by the government may not negatively affect the borrower’s scores at all.
You can approach many companies for loan modification leads when business is slow. As a lender, allowing eligible borrowers the option to modify their loans helps fulfil your responsibility to the client by giving them an option to keep their home. Helping clients be aware of and apply for a loan modification can also help draw in more clients and business for you. Your options for loan modification leads can range from live leads to real time leads to real time live leads.
115 E 57th Street, 11th Floor New York City, NY 10022Toll Free No. 877-845-8225 Fax: 646-558-4303
Email: [email protected]: www.heritusleadtransfer.com
