Loan Modification Made Simple

Loan Modification Made Simple An Insider Guide to Understanding Modification and Preventing Foreclosure Section 1: The Basics * Premise of this Book/Introduction * Comparison of Modification vs. Refinance Section 2: Understanding the Concept of Loan Modification * What is a Loan Modification? * Characteristics of a Note that a Bank Can Modify * Why Would a Bank Modify a Loan? * Causes of the Modification Boom * Modifications are Negotiations: Use the Threat of Foreclosure * Foreclosure Timetable * The Banks Reaction during the Foreclosure Process Section 3: How to Modify My Loan * What are Loss Mitigation / Home Retention Departments? * The Proper Way to Deal with Your Loss Mitigation Department (extremely important!!) * Step by Step Procedure on to How to Successfully Negotiate Your Own Loan Modification * Hardship/Hardship Letter * What Banks are looking for to Grant a Loan Modification Section 4: Breaking Down Modification Companies * When a Homeowner should Contact a Modification Company * Difference between an Attorney Based Modification and a Non-Attorney Based Company * Difference between Attorney Based Modification Companies and Law Offices * Avoiding Scam Artists Section 5: California Governor Arnold Schwarzenegger's Answer to the California Housing Crisis * California's Loan Modification legislation Section 6: Finalizing and Submitting Your Modification Proposal * Putting the Loan Modification Proposal Together and Submitting * Developing a Loan Modification Proposal * Example Loan Modification Proposal * If a Principal Balance Reduction is Denied * Loan Modification Income and Expense Worksheet * Proper Loan Modification Cover Letter Section 7: Forms * Explanation of How to Properly Fill Out Forms * Loss Mitigation Fax Cover Sheet * Example Cover Letter * Loan Modification Proposal * Real Estate Cash Flow Worksheet * Dynamic Expense Worksheet * Dynamic Income Worksheet with Disposable Income Calculation * Example Hardship Letter * Example List of Hardships Section 8: Pertinent Modification Terms * Glossary

The crucial information you need to secure a reliable loan modification and save your home Behind on your mortgage payments? Worried about losing your home? Don't panic. Loan Modification For Dummies gives you the reliable, authoritative, easy-to-understand guidance you need to apply for and secure a loan modification that lowers your monthly house payment and keeps you in your home. This practical, plain-English guide leads you step by step through the loan modification process, from contacting your lender to applying for a loan modification, evaluating the lender's initial offer, and negotiating a modification that lowers your monthly payment while helping you catch up on any past-due amounts. You'll learn how to communicate with your bank or loan servicer, recognize and avoid loan-modification scams, and find a knowledgeable loan modification specialist, if you choose not to do it yourself. Advice on determining whether you're likely to qualify for your lender's loan modification program Guidance on preparing and submitting a loan modification application that improves your chances of success Helps you figure out a monthly payment you really can afford Tips on modifying your loan even when you owe more than your home's current market value Negotiation advice for securing the best possible terms and lowest monthly payment Resources for contacting your lender, obtaining free or affordable third-party assistance, and getting government agencies on your side Read Loan Modification For Dummies and start saving your home today.

The crucial information you need to secure a reliable loan modification and save your home Behind on your mortgage payments? Worried about losing your home? Don't panic. Loan Modification For Dummies gives you the reliable, authoritative, easy-to-understand guidance you need to apply for and secure a loan modification that lowers your monthly house payment and keeps you in your home. This practical, plain-English guide leads you step by step through the loan modification process, from contacting your lender to applying for a loan modification, evaluating the lender's initial offer, and negotiating a modification that lowers your monthly payment while helping you catch up on any past-due amounts. You'll learn how to communicate with your bank or loan servicer, recognize and avoid loan-modification scams, and find a knowledgeable loan modification specialist, if you choose not to do it yourself. Advice on determining whether you're likely to qualify for your lender's loan modification program Guidance on preparing and submitting a loan modification application that improves your chances of success Helps you figure out a monthly payment you really can afford Tips on modifying your loan even when you owe more than your home's current market value Negotiation advice for securing the best possible terms and lowest monthly payment Resources for contacting your lender, obtaining free or affordable third-party assistance, and getting government agencies on your side Read Loan Modification For Dummies and start saving your home today.

This is a print on demand edition of a hard to find publication. Servicers have been reluctant to renegotiate mortgages since the foreclosure crisis started in 2007, having performed payment-reducing modifications on only 3% of seriously delinquent loans. This reluctance does not result from securitization: Servicers renegotiate similarly small fractions of loans that they hold in their portfolios. The paper¿s results are robust to different definitions of renegotiation, including the one most likely to be affected by securitization, and to different definitions of delinquency. Redefault risk, the possibility that a borrower will still default despite costly renegotiation, and self-cure risk, the possibility that a seriously delinquent borrower will become current without renegotiation, make renegotiation unattractive to investors. Illus.