July 13, 2024


Mad about real estate

Utah Loan Modification Experts

The new buzz in the mortgage industry is the term “loan modification”. A modification is the process by which lending institutions will modify the existing loan of their borrower to make payments more affordable. In-house modifications have existed before Obama officially published Home Affordable Modification Program in March 2009 (HAMP Program) assisting homeowners whose home was originated before January 1, 2009, however in-house modification were not permanent and were a temporary means by which lenders would assist a borrower in making their payments. These modifications were temporary anywhere from 3- 6 months.

In the past year or so, many people have heard radio ads, seen the billboards, and by word-of-mouth being introduced to the process (a possible intervention and prevention program) of a modification to reduce monthly mortgage payments. In consequence, they quickly contact their bank, receive the application papers, fill out the information, send the documents in, only to be denied. They then are confused because of what they have heard, seen, and been told. The homeowner then is even more discourage then before, because from what they have heard they qualify either because they are unemployed, divorced (now paying alimony and child support if children are involved), have reduced income, or have experienced a unforeseen medical expenditure or foreseen medical expenditure which resulted in more bills. And the question they ask themselves “Now what do I do?” Maybe while reading this you are saying, “Yes, that is me…Oh my gosh that is totally me right now.”

The reasons for the bank denying your application for a modification could have been the result of a number of factors. The first could have been your education or understanding of modifications and the requirements which qualify a homeowner. Far too many homeowners assume that if they are unemployed or even if they are no longer making what they used to that they automatically qualify. This paradigm or belief is not factual.

Second, although you have a qualifying hardship your debt-to-income ratio (DTI) is below or a percent above the qualifying amount. This qualification is determined by acquiring your gross monthly income and your mortgage payment. Then the bank will calculate your front-end DTI by dividing your payment by your income receiving a percentage or your front-end DTI. If your front-end DTI is greater than 31{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} then you meet one of the qualifying criteria in successfully obtaining a modification through your lender. If your DTI is less than or equal to 31{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} you will most likely be denied.

There are other reasons why homeowners are denied and do not obtain a modification with their lender. This is part of the reason why people seek professional help from experts within a particular field of practice, or industry. An expert, one who has a special skill or knowledge within a specific industry, will be able to facile a modification on your behalf successfully. And as with any expert in any field of professional practices a fee or cost is associated in paying for their help and service, which will vary between organizations.

If you are unable to successfully accomplish a modification with your lender on your own, then you should seriously consider not only working with a expert in the field of financial services, but with a professional in this field also.  This may appear redundant, and if one is an expert in the financial industry shouldn’t they automatically be a professional? In the ideal world where everybody is honest, forthright, and without guile, than yes this would be the case, however we live in a world that continually analyzes specifics industries making new laws to combat fraudulent activities. A professional is considered or “characterized by or conforming to the technical or ethical standards within a specific profession”. Therefore, an expert may not be a professional in his/her field of practice. Then how does a homeowner determine who is not only an expert, but also a professional:

  1. Does the individual honor the licensing laws within the field? As of May 18, 2010 all modification experts, in Utah, who receive or expect to receive compensation for their service are required to have a mortgage loan origination license.  These individuals have passed not only the state but national exam also. They are required to have received 60 hours of educational courses which overview the laws, ethics, and other aspects within the mortgage industry. As licensed officers they are bound by judicial laws and penalties for breaking these laws.
  2. Modification professionals and experts here in Utah offer guarantees confirming their commitment with customers who are paying for their service. Guarantees vary between companies and it would be wise for any homeowners to assay what the guarantee really is, and what is truly being offered.  If they don’t offer any guarantee, avoid them and walk away.
  3. They understand that a modification is not a one step process of receiving the application, speaking with your lender, and “Abracadabra” your payment is reduced. An experts ability to negotiate, work with, and persuade the lender (according to the technical and ethical standards with institutions) is tantamount in coming to terms with a bank to agree to new terms in lowering your monthly payment, making your home more affordable. In other words, if the banks process of a modification is two-six months don’t expect it anytime sooner. Therefore, the majority of those who obtain a mortgage modifications will be in line with the set parameters by the lender.
  4. Keeping commitments, which is self-explanatory. They call when they say they will call. They follow-up when they say they will follow-up. You get the point.
  5. Their educated not only to specifics guidelines in Utah, but Nationally as well.  They understand the laws, the processes, and requirements within the industry. What if your working with a new officer, new to the field? If you are, then verify the companies experience and success with modifications. Working with a newly trained and educated originator will only have a significant impact if the company is not experienced either. In this case I remember the words, “O be wise”, need I say anything more?

With LocalMod.org all of our officers who are currently initiating, receiving, and taking calls are licensed professionals being guided by our CEO and President who are experts and professionals in this field of practice.

LocalMod also offers Utah homeowners 100{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} satisfaction guarantee not only in consummating a modification, but that you are satisfied with the modification, or your money back.