A Loan Modification (sometimes called a Loan Mod), is the altering of one or more of the characteristics of a loan and/or its terms.. Loan Mods are usually the result of the borrowers inability to make payments in the agreed upon time-frame or because the property is worth less than the borrower owes. This means that a Orange County homeowner has taken out a loan to purchase a property, or refinanced a cash out loan,$ and in not able to repay it in accordance to the pre-set schedule designed when the loan was taken out. They then fall behind on their payments and are faced with a few tough choices…. foreclosure, deed in lieu of title, short sale or loan modification.  The only option of this list that does not force the Orange County homeowner to lose their home is the Loan Modification.

For homeowners who can document the ability to repay the loan in a reasonable and sustained capacity, the bank will allow certain changes to be made in the loan. These loan modification changes include temporary interest rate reduction, permanent interest rate reduction, adding an interest only option, stretching of amortization, principal balance reduction, a forbearance agreement or a combination of changes.

A loan mod is a negotiation between the homeowner and the bank.  The goal of a loan modification is to change the amount of payment to a level where the borrower can consistently make their mortgage payment as well as pay other bills. Banks do not want a mortgage to consume an entire monthly budget. They will take the homeowners entire budget into consideration ie; car payments, cell phone, utilities, credit cards payments, etc.  Keep in mind that bank’s loss mitigation department will take into account all necessary expenses to live a normal while still maintaining a reasonable mortgage payment.

Our professional real estate company specializes in loan modifications for Orange County homeowners.  We have association with an Attorney who has worked the some of the Nations largest banks.  For questions or consultation regarding a potential loan modification, call our Attorney based Loan Modification affiliate:  949-388-3396 or email us at:  Info@CaLoanModLawyer.com