A loan modification is a change to the terms of an existing loan by a lender as a result of a borrower’s long-term inability to repay the loan. This allows the borrower to avoid the risk of a potential foreclosure and allows the lender to avoid having to take ownership of the property.

The loan modification process starts with gathering documents, filling out the required paperwork, collecting current proof of income (if any), and submitting these documents to the lender and/or mortgage servicer. We assist you in getting these documents submitted, and walk you through the process every step of the way.

A loan modification can help you keep enjoying the home that you are living in and avoid the risk of foreclosure.  Many people face hardships in repaying their mortgage and we strive to be a resource to help you afford your mortgage payment and avoid a foreclosure on your credit.

SIMPLE! Submit a request at the top right corner of this page under “GET STARTED” or simply call us at (310) 706-1664 and one of our counselors will be able to assist you in getting started or to answer any questions that you may have.

Through a modification process, your mortgage lender agrees to change your interest rate, your principal balance (through a reduction), your loan term (ex. from adjustable to fixed) and any or all of the above.

Lenders have realized that in some cases it is better for them to work with their current borrower to lower their payment or possibly improve their terms in order to keep them in their property. The average foreclosure can cost a lender from 35 to 50% of the value of the property (or more) so keeping a borrower in their home is better for everyone.

Your credit score may be adversely affected by accepting the temporary modification period process. During the temporary period, we’ll continue to report your loan payment status to the credit reporting agencies. Your loan will be reported as past due during the trial period plan, even if your loan was up to date prior to the trial period. If your loan was up to date when you entered the trial period, and you make each trial period payment on time, it will be reported as current, paying under a partial payment agreement. Completing a modification will not change previous negative reporting. The impact of a permanent modification on a credit score depends on the homeowner’s entire credit profile.

You are not alone and foreclosure is not the only option. If your mortgage lender or servicer will not willing to work with you to reduce your payment, you may want to consider a short sale. Our team is able to assist with these as well. A short sale allows you to sell your home for less than what you owe and avoid foreclosure if you qualify.

Foreclosure is a legal process used by your lender to reclaim a property that is in default and sell it to pay off your loan. A short sale is a workout that when approved by your lender would allow the home to be sold at fair market value even if it is less than the total amount due on the loan. If you owe more than your home is worth (its market value), a short sale may be a good option for you if you have experienced a financial hardship and can no longer afford your home. Foreclosure will reflect more negatively on your credit report than a short sale.