FAQ's
What is Loan Modification?
A loan modification is when your current lender modifies your existing mortgage to make the loan more affordable. Usually it is in the form of a rate reduction and fixing the rate. In the past this was only used when a borrower was delinquent and suffered a hardship such as a job loss, divorce, illness etc. Now borrowers can obtain mortgage help from their lender for unaffordable rate adjustments, to lower their principal balance in order to sell or refinance they're home, or to lower or defer payments until they are back on there feet. The earlier you get started, the better your chances are of getting the modification that's right for you. With the bailout that the Government afforded these lending institutions, you no longer need to be late on payments or in foreclosure to modify your loan.
How can Guardian help?
Regardless of the size and type of your mortgage, it may be impossible to refinance or sell your home because you owe more than your home is worth. As well, you may find yourself unable to keep up with your mortgage payments because of rising interest rates and property taxes. You may also suffer from a recent layoff, divorce or illness that can have a negative impact on your ability to pay your mortgage. As a result, millions of Americans are finding they need to modify their existing loans just to keep their homes. Guardian will work with your lender to negotiate a loan modification at a low, fixed payment you can afford. In some cases we can even your principal balance or defer payments. If you are upside down and can no longer make your monthly payment; up to now the only option was letting the bank foreclose and walking away. That is not a good option since a foreclosure sticks on your credit record for at least 10 years and becomes public record available to everyone including future employers. Let our office help you stay in your home with payments you can afford.
Do I need to be delinquent or behind on my mortgage?
No, but it will make things easier. Loan modification is meant to help people in financial hardship, and banks are more than willing to help you when Guardian is on your side.
Can you help me with properties that I'm not living in or currently renting out?
Yes.
Is it too late to help clients who have received a Notice of default?
NO! The Loan Modification Department can prevent foreclosure up to a few days before the actual transfer sale date. One of our on staff attorneys will stop your foreclosure date so we may proceed with your modification. However, if you are thinking of getting help, please don't wait until you have received a notice of sale.
What interest rates can I expect after a loan modification?
The results vary from case to case. Our lowest rate we achieved to date was 1%.
How do I pay?
You can pay with Master Card, Visa, Discover Card, Cash, Cashier's Check or Money Order.
Loan Modification Options:
Rate Reduction Modification will permanently reduce the interest rate associated with the loan, thus lowering your monthly payment.
EXAMPLE: Your interest rate is 9%. Your monthly income was reduced when your company reduced your overtime. You are current on your mortgage, but you are not able to maintain the current payment. Your credit is not good and you have a difficult time finding a lender to refinance your loan to a lower interest rate. A rate reduction modification will lower your monthly payment. Guardian Kept You in Your Home.
Capitalization means adding the delinquent payments into the remaining balance and updating the payment due date and perhaps "recasting" the payment amount. Capitalization may be used when other modifications would not be appropriate, such as, if the interest rate is already at or below the market rate, or if the delinquent amount due is just too much for you to pay back within the specified period of time.
EXAMPLE: You lost your job and became four months behind on your mortgage payments. Recently you have found a new job, but you are unable to bring the loan current. However, you are able to make a higher mortgage payment. The loan is "recast" and the four delinquent payments are added to the loan balance and a new payment is calculated. Guardian Kept You in Your Home.
Term Extension is extending the amount of time you have to repay your loan in order to achieve a reduced monthly payment (I.e. 15 year mortgage extended to 30 years). It is often used together with an interest rate reduction or a capitalization modification.
EXAMPLE: You were planning to pay off your home mortgage early, so you took out a 15-year loan. A few years later you lost your job and fell 3 months behind on your mortgage. Since then you found a new job but your income had fallen significantly. The loan is "recast," adding the delinquent payments to the loan balance as well as extended to 30 years. Guardian Kept You in Your Home.
Loan Type Conversion can be a solution for you if you currently have an adjustable rate mortgage (ARM) and may not be able to keep up with increased payments during times of increasing interest rates. In this case, the lender may opt to modify the loan type to avoid increasing the interest rate. The loan could be converted to a fixed rate mortgage.
EXAMPLE: You purchased your home several years ago when interest rates were high. You opted for an adjustable rate mortgage (ARM). You can no longer make the payments. The lender converts your loan to a fixed rate mortgage. Guardian Kept You in Your Home.
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Toll Free: 1-877-511-MODS (6637)
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