Does Loan Modification work? No it do...

Does Loan Modification work? No it doesn’t. Find out how.

Posted in the Mortgage Forum


New York, NY

#1 Jul 27, 2013
How Loan Modification hurts homeowners. Get help with a Securitization Audit or Forensic Audit at Securitization Audit International. We have the real solution to homeowners misunderstanding that a Loan Modification helps them. We serve New York, New Jersey, Connecticut, Illinois, Ohio.
Loan Modification is a process by which the lender agrees to lower someone’s payment terms, usually the monthly payment amount. However when the payment is reduced to a lower amount, the difference in what the homeowner was supposed to originally pay, and what the bank is now agreeing to take on a monthly basis is often tacked on to the back-end of the loan, plus interest, plus penalties, plus fees. Many Loan Modifications stretched out the term of the loan from a 30 year loan to a 40 year loan. So by factoring in all these changes that are made to someone’s mortgage, the principal balance often times increases a significant amount, making it impossible for the homeowner to actually pay off their mortgage and own the home.
Typical scenario:
Initial mortgage balance:$300,000
Monthly mortgage payment:$2800

Homeowner loses job (or goes through a divorce/death in the family, etc) and cannot make the payment and looks to get a Loan Modification to lower the payment. The lender is constantly telling the homeowner to resend their documents either due to the bank not having the documents the homeowner sent, or it’s a new month and the borrower has to resubmit all the paperwork again, and again.
In addition, the homeowner is not aware the bank will tack everything on the back end of the plan, which means the individual applying for a Loan Modification never be able to pay the loan off.

Visit us at for more information and help!
Pam Perd

Elizabethtown, KY

#2 Aug 3, 2013
Your loan can be modified in any number of ways, not just that one. You can take the number of payments that you're behind & tack them on the back of the loan. You can pay just interest or just principal. When you get back on your feet, if you make just 1 extra payment per year, you can knock several years off your loan. If you find a reputable bank, it can be a blessing. Avoid scams by avoiding companies that solicite your business

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