Loan Modifications From American Equity

Question: What is a Loan Modification?
Answer: "A Loan Modification is a permanent 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."
(Source: U.S Dept of Housing)

Question: What are the official Requirements to be Approved for a Loan Modification?
Answer: According to the HUD Website:

• Minimum of 12 months elapsed since loan origination date.
• The mortgagor must be 61 days delinquent (3 full payments due and unpaid) or more.
• Default due to a verifiable loss of income or increase in living expenses.
• The Loan Modification mortgage must remain in first lien position.
• Loan may not be in foreclosure when executed.
• Owner-occupant, committed to occupying property as primary residence.
• Mortgagor has stabilized surplus income sufficient to support the Loan Modification mortgage.
• Does not have another FHA-insured mortgage.

Question: Is Loan Modification another way of saying Refinance?
Answer: No. The property is not being refinanced. The terms of your current loan - the interest and monthly payments - are "modified". This is not a refinance with a new loan. If you qualify it is much simpler then a refinance.

Question: Please explain who qualifies for this program?

• You must have a genuine hardship. This can be a loss of employment, a rate increase, a decrease in property value, or other hardship which has made it difficult to make their monthly payments. You must be willing to write a hardship letter as part of the application process.
• You must have made the decision to keep your home. You have to be sure that you want to absolutely keep your home and you will continue to stay current on the new monthly mortgage payments, once negotiated.
• You must be able to afford the new terms of the modification - the monthly payments.
• You must be able to afford the to pay for the modification service itself.

Question: What exactly is modified in the loan?
Answer: Typically one or more of these are renegotiated;

• A lower payment
• A lower rate
• A lower fixed rate
• Forgiveness of late payments
• Reduction in principal balance

Question: Why should I use American Equity for my Loan Modification?
Answer: American Equity has been helping home owners for over 17 years. With American Equity you get a team of highly experienced people with a proven track record ready to help you. Loan modifications programs are relatively new - but you still need an experienced team to help you move the loan modification through the different requirements. When everything is ready to be submitted we work with you and our lawyers who have established relationships with most banks and lenders.

Question: I believe I can qualify for a Loan Modification - how do I start ?
Answer: Simply fill out the contact form below and one of our team will contact you back.
OR
Give us a call at our Toll Free Number: (800) 546-8735

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