Arizona (AZ) Loan Modification
Before you think about foreclosure or short sale I recommend that you try a loan modification. Even though the success rate is not that high (before and after a loan modification) it is a good way to try to keep your home. Please click here for loan modification help.
Now let’s explain a little about an Arizona Loan Modification.
Arizona Loan Modification:
- Permanent change in one or more of the terms of your loan
- Allows the loan to be reinstated
- Results in a payment you can afford.
I’ll state some facts about Arizona Loan Modification:
If you are late on your payments and begin the loan mod process you can get those accrued late fees waived by the mortgage company. That is a goal of the loan mod. It brings the delinquent mortgage current and gives you a new start.
You can reduce (or increase, but they are at record lows right now) your current mortgage rate to the current market rate when you complete a loan modification. The date the mortgage company approves the loan mod (all verification completed and servicing notes documented, reported to SFDMS) is the date that mortgage company is to use in determining the interest rate.
Your total unpaid loan amount that is due will re-amortize over a 360 month period (30 year). This will be from the due date of the first installment required under the newly modified mortgage.
Let’s say you recently became unemployed, but your spouse is still employed. However, your spouse is not on the mortgage. What happens next is that the mortgage company will look at your household income and expenses and figure out if the spouse’s income is sufficient to satisfy the new modified mortgage payment, but insufficient to pay back the arrearage (amount of loan that is overdue). Basically, they are considering whether they should do a loan mod with you in your current situation. Once they figure that out the mortgage company will talk with their legal department and discuss legal things and decide again if they should do a loan mod with you because your spouse is not on the original mortgage.
There are many more little things that happen or can happen in a loan mod. All mortgage companies are different because they have different people working for them and have different rules regarding loan mods. There a set of rules they must follow and like everything else if you have an expert on your side these rules can work for you and not against you.
Please click here to speak with a loan modification expert before you make any decision regarding your home.
