Frequently Asked Questions
Q. What is a loan modification?
A: A modification is a change to the original mortgage terms. It may include a change to the product (an ARM to a fixed rate mortgage), interest rate, amortization term and maturity date, and/or unpaid principal balance. The change/s is made to create a more affordable payment for the borrower.
Q: What is a successful loan modification?
A: A successful loan modification is a modification creating a monthly mortgage payment that is sustainable for a troubled borrower by targeting a benchmark ratio of housing payment to monthly gross household income.
Stopping Foreclosure: Detroit and Michigan Homes
If you’re struggling with your mortgage like many other Michigan homeowners, the word ‘foreclosure’ can seem dreadful. The truth is, foreclosure should be the last resort. Simply stated: Don’t do it! But, how can you keep foreclosure from hanging over your head if month after month you slip behind? There are many options available to homeowners to stop foreclosures in Michigan – and National Loan Restructuring can help.The Early Bird Saves the Nest
If you’re having trouble making your mortgage payments, the sooner you contact us about your situation, the more options you have available in stopping foreclosure. National Loan Restructuring can negotiate with your lender to allow you to keep your home with a number of options:
Forbearance
Forbearance is a way to temporarily halt your mortgage payments for a short time. If you can prove that you will be able to make up the money in the near future (such as with a tax refund), forbearance is a quick and relatively easy way to ease your financial load for a short time.
Loan Modification or Restructuring
This is essentially a re-negotiation of the terms of your home loan. Adjusting the interest rate or changes to the amortization could mean significantly less money out of your pocket each month – and keeping your home. Contact National Load Restructuring and speak with a loan modification specialist for more information.
Reinstatement
If your mortgage payments are behind, a promise to make up the lost payment(s) at a specified date in the future can help you. Called reinstatement, lenders often combine it with a forbearance to help you get back on your feet and catch up on payments.
Short Sale
If you would like to avoid foreclosure, but want to walk away from your home, a short sale can help. Also called a pre-foreclosure sale, a short sale is a pre-negotiated sum, and when the house sells for that amount – even if it’s less than the amount owed – the lender considers it payment in full. Contact National Loan Restructuring for information.
Repayment Plan
If you’re falling behind on your mortgage payments, the lender might allow you a certain amount of time to catch up. Instead of making up all of the missed payments, the missed payments may be split up over a period of months, making the process of becoming current easier for you.
National Loan Restructuring specializes in helping homeowners avoid foreclosure by negotiating with your lending institution by all available means. We help to stop foreclosures all over the state of Michigan, including Oakland, Livingston, Macomb, Lapeer and Genesee counties, with a heavy emphasis on Detroit.