A Loan Modification is a change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford. Not everyone is qualified to receive a loan modification. There are certain criteria that the Banks are looking for which will be discussed in further detail later in this package.

Types of Modifications

Mortgages are modified to the benefit of the borrower in one or more of the following ways:

• Reduction in interest rate, or a change from an adjustable to a fixed rate, or in how the floating rate is computed
• Reduction in principal
• Reducing late fees or other penalties
• Lengthening of the loan term
• Capping the monthly payment to a percentage of household income

Here is some important information that will help you eliminate some of the confusion and frustration if you wish to apply for a loan modification with New York Real Estate & Funding Solutions to get a lower monthly loan payment. If you are facing a financial hardship and are having trouble making your current mortgage payment, a loan modification can be the answer to help you stay in your home. Your lender may agree to modify your current loan to a lower interest rate, a longer term, include missed payments and late fees or allow principal forbearance to arrive at an affordable payment to help you stay in your home. As we mentioned before, unfortunately, not all borrowers will qualify-but we can increase your chances of success by following the proven techniques we’ve used to help struggling homeowners in the past.

 What are Banks Looking For?

• Someone who no longer qualifies for a refinance
• Someone currently in an adjustable rate mortgage (ARM)
• Someone who is behind on their mortgage
• Someone whose mortgage payments have become high
• Someone who has experienced a hardship
• Someone who is self employed during tough economic times
• Someone who has no equity in their home or is “upside down”
• Someone who is about to go into foreclosure