The Credit Crisis and Housing Crisis have deemed these times we live in as truly historical.  Unfortunately, you may remember these as some of the most difficult and emotional times in your life.  Much of this is a result of your desire for a piece of the American dream… homeownership. 

Our mission is to Educate and Empower you to make the best possible choice for you and your family so you can get back on your feet and return to life as normal.  At helpUmodify we will help by providing you insight to help with a Do-It-Yourself approach.

Before getting started on a loan workout with your lender you need to first consider if you will be able to afford the payments providing that the bank agrees to work with you.  I know this seems a bit of an oxymoron but think of it in terms of having an interest only payment on your mortgage with a low interest rate of 4% or so.  Take the balance of your mortgage and calculate what the approximate mortgage payment would look like (Mortgage Balance multiplied by .04 and divide by 12), add in your taxes and insurance, and carefully consider the monthly payment. Keep in mind that these terms are almost best case scenario.  If you cannot afford to make this best case scenario payment, you need to carefully consider selling your home.

The most misconstrued information about Loan Modifications is that lenders will reduce the principal balance on your home.  That is not the case in most instances.  The closest we are seeing to making mortgage more affordable through principal reduction is “principal deferral”.  See FHFA Loan Modification.  This means the lender will take a portion of your mortgage and defer it to what amounts to a balloon payment, taking it out of the monthly amortization, thus lowering your payments.

The First Step in initiating a workout with your lender is requesting the workout package from your loan servicer. This is easily accomplish by calling the customer service number on your monthly mortgage statement. Once you receive the package, you can prepare and submit the package on your own or hire helpUmodify to process and submit the package for you. We consider this first step the most critical in the process and thus the Simple^Submit service is now the ONLY service we offer.

 

The Simple^Submit service is just how it sounds; we provide the processing and submission of your workout request and application to your loan servicer.  The benefit is simply this; Your lender is going to make their decision on whether or not to provide you with loan workout assistance based on your application and how your present your situation.  If you do it correctly, you should be in good shape. If you do not do it correctly, then chances are you are not going to get the help you need.  That said, it is imperative that your application is accurate and truthful as all of the information you provide can and will be verified.  We cannot emphasize this enough.

Here are the 5 Simple^Submit Steps:

1) Complete the helpUmodify application and family budget below. When you complete it, you will be e-mail a set of documents and forms. These will get signed and faxed to us along with all of your supporting documentation.

2) We will process and underwrite your file according the standard Making Home Affordable guidelines along with several other programs that various lenders now offer. If we determine you should qualify, we will submit your file to your servicer.

3) We will provide you with a submission confirmation along with contact information to your servicer and the complete submission package with all supporting documentation.

4) We will charge you for completing our service agreement either via credit card or bank draft and provide you with a receipt. Our Simple^Submit service fee is $316.

5) We will provide you with FREE ongoing customer support with tips and techniques you may need to achieve your Do-it-Yourself workout solution.

Here is what esle you need to know:

IT IS NOT NECESSARY TO PAY A THIRD PARTY TO ARRANGE FOR A LOAN MODIFICATION OR OTHER FORM OF FORBEARANCE FROM YOUR MORTGAGE LENDER OR SERVICER. YOU MAY CALL YOUR LENDER DIRECTLY TO ASK FOR A CHANGE IN YOUR LOAN TERMS. NONPROFIT HOUSING COUNSELING AGENCIES ALSO OFFER THESE AND OTHER FORMS OF BORROWER ASSISTANCE FREE OF CHARGE. A LIST OF NONPROFIT HOUSING COUNSELING AGENCIES APPROVED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) IS AVAILABLE FROM YOUR LOCAL HUD OFFICE OR BY VISITING WWW.HUD.GOV

Get Started CLICK HERE.

 

 

Consider the fact that you may not be able to afford your home. This can be a difficult realization but very important to challenge yourself to think about. If you cannot afford the home, your lender will know this and they will be unlikely to provide you with a workout solution. Often times selling the home is a good exit strategy. If your home is worth less than you owe on it, do some research on “short sales”.

If you choose to sell your home you may need to find a Real Estate professional that has the experience to negotiate a short sale.  This can be a difficult and specialized process and we suggest you do your homework before hiring a Realtor for this purpose.  Look for someone who has processed between 10-15 short sales and check their references to be certain.  If you need a referral, feel free to contact us.

Many lenders have developed “boiler plate” or “Standardized” workout solutions that they will offer to you once you contact them for workout assistance.  Often times these are not the best offers but can be great temporary solutions until something better can be negotiated.  If you are limited on time, consider accepting one of these offers as you continue to work towards a better long-term solution.  One point of caution; many lenders only offer one workout offer per 12 month period of time.  Inquire with your lender and take this into consideration.