Hello my name is Moe Bedard and welcome to LoanWorkout.org, America’s #1 loan calculator and finance blog on the internet.
I have been providing free foreclosure help, information and safe tools to struggling homeowners since early 2007. My good deeds and humanitarian work has been featured in the New York Times, LA Times, Fox Business and dozens of other media outlets all over the world as an expert in this field.
In addition, my forum over at LoanSafe.org has helped over 1,000 families save their homes for free and this has been documented by the actual homeowners themselves since 2007. If you want to network with other homeowners in the same situation as you, then this is the best free online place to do it. Click here to join the fight with over 45,000 other homeowners!
What is a loan modification?
This is also referred to as a loan workout and it is when your current lender agrees to modify (change the terms) of your existing mortgage in order for you to afford the monthly payments and avoid foreclosure. When they modify your loan, this means you still have your original mortgage, but that your servicer either lowered your interest rate so you now can afford your monthly payments and or placed any late payments that you may owe on to the principal balance (the total amount owed on the loan).
In most all cases, your mortgage servicer will generally only lower the interest rate and possibly extend the term of your loan. Principle reductions rarely happen. So, if you’re just looking to knock your $500,000 mortgage down to $300,000 because that is all your home is worth, you need to understand that it’s probably never going to happen!
It is really as simple as that! The most difficult part of obtaining one is dealing with your uncooperative mortgage servcier and going through the long, crazy and drawn out process which may take from 6 months up to 2-3 years. Yes, I have seen some homeowners fight for meaningful mortgage help for 3 years and some are still fighting. You need to get educated and what you need to do most is prepare yourself mentally for one the biggest and longest fights of your life because your mental state as a huge factor on if you will be successful or not.
How do I know if I qualify?
A mortgage modification generally occurs when both parties (borrower and lender) to a problem loan mutually agree to workout the issues by creating new and better loan terms. The hope is that the new improved mortgage will enable to the borrower to meet their obligations and avoid foreclosure.
The determining factors that your lender will look at are:
- Nature of Hardship Causing Your Mortgage Problems
- Ability to pay
- Amount Owed
- Equity in the property
- Future financial situation
- What is better for them? To foreclose or pursue a loan workout with you and or modify your loan. Meaning which approach will best benefit the lender in the long run.
Bottom line, you have to have the ability to pay and some income coming in. If you don’t, then most likely your lender will suggest a short sale.
Here are some great loan modification articles and tips you can read to become more educated on the subject:
- Loan Modification Myths and Facts
- Watch Out for Scams & Illegal Companies
- Your Loan Documents May be the Secret Key to Obtaining a Loan Modification
- Should I accept my loan modification offer or counter?
- Find FREE government help to stop foreclosure
- Watch Out for the predators, scams and frauds
Foreclosure defense and lawsuit articles for those of you considering legal action to fight for your home:
Here are some very popular blog posts I wrote on this subject and bankruptcy. I suggest you read them:
- Will filing bankruptcy stop foreclosure?
- Remove Your Second Mortgage in Bankruptcy
- Principle Reductions: Wipe Out Your 2nd Mortgage With Bankruptcy
Find your lender or the most commented blog posts right here:
- Lender Loss Mitigation Phone Numbers & Contact Information
- Citi Mortgage Loan Modification for This Grateful Homeowner (over 200 homeowner comments, join the discussion)
- Countrywide Home Loan News, Lawsuits and Popular Posts – (over 200 articles, rants and information to help you deal with CW)
- Chase Mortgage Contact Information & Help
Find FREE examples, letters and forms below:
- Example hardship letter
- How to write a hardship letter
- Income & Expense Sheet
- Coming soon
Do you have more foreclosure questions, Click here to find more answers and mortgage help. If you are just looking to find a HUD certified housing counselor or a government agency that can assist you because you don’t have the time or patience to do this on your own, please scroll down below for the largest list of links and free help anywhere on the internet.
Moe’s Most Famous Articles and Commentary:
- Polishing Mortgage Turds: The FDIC Loan Modification Plan Will Not Work Without Massive Principle Reductions
- The Year of Foreclosure Prevention Flops
Are you looking for FREE government help? Please look no further because I have all the links and info you will need below:
Here is the most complete list of links to free government help to stop foreclosure anywhere on the internet.
Home Affordable Modifications
If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible.
All the below links are official government websites or HUD approved non-profit housing counseling agencies. LoanWorkout.org and Moe Bedard are not affiliated with any of the below government agencies or non-profits in any way, shape or form.
- Making Home Affordable
- Home Affordable Modification
- Home Affordable Refinancing
- HELP 24 hours a day / 7 days a week – (888) 995-HOPE
- Help For Homeowners Facing The Loss Of Their Home
- HUD Approved Housing Counseling Agencies: California Cities
- List of Approved Credit Counseling Agencies
Can’t get the help you need and deserve? FIGHT BACK!
- Write Your Senator Today! State Senator Contact Info
Department of Housing and Urban Development
- Mortgage Servicing Complaints
- Housing Counseling Agencies
- How to Avoid Foreclosure (82 KB PDF
- Tips for Avoiding Foreclosure
- Info on Escrow Accounts
Department of Justice (DOJ)
Federal Housing Administration(FHA)
Federal Trade Commission (FTC}
- File a Complaint with the FTC
- Credit & Loans
- Credit Repair: Self Help May Be Best
- Foreclosure Rescue Scams: Another Potential Stress for Homeowners
- Mortgage Payments Sending You Reeling? Here’s What to Do
- Mortgage Servicing Complaints and Info
Internal Revenue Service (IRS)
- Homeowners Who Lose Homes; Tax Relief Available to Many
- Q&A on Home Foreclosure and Debt Cancellation
Office of the Comptroller of the Currency (OCC)
YES, More Loan Modification Help!:
- Get Mortgage Help Now – By County
- Loan Servicer “Hotline” Contact Numbers
- What if You Cannot Pay Your Mortgage?
- (VA) – Trouble Making Payments
- Mortgage Payments Sending you Reeling? Here’s What To Do
- NeighborWorks America
- National Association of Consumer Advocate Attorneys – NACA
- Neighborhood Assistance Corporation – NACA
- National Association of Bankruptcy Attorneys – NACBA
- Keys to Preserving Homeownership