Frequently Asked Questions
Table of Contents
- What is a Loan Modification?
- Is it too late to save my house?
- Why would the bank modify my loan?
- Can I do a modification on my own?
- I am current on my mortgage, do I qualify?
- My bank has refused to help, is there a solution?
- What kind of loans can be modified?
- What do I need to prepare my modification package?
- What is the difference between Diaz & Associates and other companies?
- How long does the process take?
- Will this hurt my credit?
- What are my options if I don't qualify for a loan modification?
- Are
there any other options I should know about?
What is a Loan Modification?
A: Banks reduce your monthly payment by reducing interest rate, principle balance and re-constructing the terms.
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I am several payments behind. Is it too late to save my house?
A: No! As long as we have at least 3 days before a foreclosure auction, we can help.
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Why would a bank modify my loan instead of foreclosing on my house?
A: The bank looses less money lowering your interest rate and mortgage balance than foreclosing.
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Can I do a modification on my own?
A: Yes
However ask yourself this.
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Would you represent yourself in a court of law?
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Do you know what qualification formula that that the banks are looking for in your financial statement?
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Do you know what to say in a hardship letter?
I am current on my mortgage, do I qualify?
A: Yes, Banks do not require you to be behind on your payments.
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I have spoken to my bank and they refuse to help. Is there still a solution?
A: Yes! Many homeowners are facing the same situation.
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What kind of loans can be modified?
A: Any type of loan. We are experts!
Negative amortization, ARM, 80/20, HELOC, FHA, Rural, VA, Freddie Mac, Fannie Mae, Conventional, 1st and 2nd mortgages, primary residence, second home, Luxury, Condo, Investment Property, Commercial and Land.
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What do I need to prepare my modification package?
A: Basically every thing that proves your income and home expenses. Click here for a detailed list.
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What is the difference between Diaz & Associates and other companies?
A: Most loan modification companies are either Lawyers or Mortgage Professionals. Diaz & Associates uses a three point approach.
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Expert Legal services for foreclosure defense.
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Decades of insider mortgage experience to prepare your loan modification package.
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Seasoned professionals in the processing department that negotiate and follow-up on the details of your loan.
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How long does the process take?
A: Most loan modifications take an average of six to nine months to complete.
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A: Modification does not damage your credit, going 30 plus days late on your mortgage payment does.
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What are my options if I don't qualify for a loan modification?
A: These are a few options we can assist you with:
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Refinance into a new loan.
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Short sale
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Rent out your home to cover expenses.
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Are there any other options I should know about?
A:
Yes! Deed-in-lieu of foreclosure:
As a last resort, you "give back"
your property and the debt is forgiven. This will not save
your house. This option might sound like the easiest way out,
but it has limitations:
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You usually have to try to sell the home for its fair market value for at least 90 days before the lender will consider this option.
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This option may not be available if you have other liens, such as HOA liens, creditors judgments, second mortgage, and IRS or State tax liens.
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This option damages your credit just as if were a foreclosure. It will effect your credit for 4 to 7 years.