What is a Loan Modification?

       A loan modification is a change to the loan contract which is agreed to by the lender and the homeowner. the lender modifies the existing loan(s) in order to work with the homeowner because of hardship. The purpose is to help make the loan(s) more affordable. Usually it is in the form of a rate reduction, fixing the rate of certain duration of time (Rate Freeze), or term extension. In the past, this was only used when a borrower was delinquent and suffered a hardship such as job loss, divorce, illness, etc.

       Now borrowers can obtain modifications or freezes from their lender for unaffordable rate adjustments on adjustable rate mortgages. The earlier the homeowner addresses the issue, the better the chances are of negotiating a fixed rate and a payment that is managable.

If the homeowner can afford their home and just not their current mortgage payment, then they may be eligible for a loan modification

A key factor that is required in every loan modification is the existence of a financial hardship for the borrower. The hardship can be temporary in nature or permanent, but the borrower must be able to prove the hardship.

Loan Modification is:

       A Permanent Change in one or more terms of an existing loan, Allowing the loan to be Reinstated or Adjusted Creating a Lower payment and/or Reducing what was Owned on the Original Loan.

Loan Modification Can Adjust Permanently:

-Interest rates, Lowered and/or Fixed

-Payments lowered

-Loan Balanced lowered or Eliminated!

Loan Modifications can also be done on properties that are not behind on payments.

How Do We Do It?

       We work directly with professionals who submit files for Loan Modification processing. We have established mutually beneficial relationships with most lenders; we know their systems and they know our submission files. We are working on behalf of the homeowner, but at the same time, we are helping the lenders avoid taking drastic actions like foreclosing on the family home.

"Win-Win-Win-Win"

-The Homeowner

-The Lender

-The broker

-The American Economy

What Do We Offer and How much will it Cost:

-We offer "Free Forensic Loan Audit"

Other companies are charging $400-800 for the forensic loan audit alone!

-When you move forward in the process, after the free evaluation, the lawyer in charge of your case will tell you how much the fee will be NOTE: this fee will not be payed to Mendes Group LLC it will instead be payed to the Lawyer in charge of your case .

You are obtaining the services of the highest caliber of legal representation. Let's compare this to the fact that it could cost you 10-12 thousand dollars to retain an attorney to represent you if you did this on your own. The legal team is going to look for every possible angle to save your home, whether it is using the results of the forensic analysis or representing your hardship emphatically. Obtaining legal chances of staying in your home. you do want to stay in your home, right?

OR

Let's also look at it from the perspective of the money that you will be saving once your loan is modified. We are typically able to lower the mortgage payments by 40%. Let's take the example of a $2,500 a month mortgage payment. After the loan modification process, this homeowner is reset to a payment of $1,500. That is $1,000 in savings each month. You will have paid for the process in less then four months, but reap the benefits for your decision with hundreds of thousands of dollars in savings over the next 30 to 40 years.

Who Needs Loan Modification:

-9 Million Homes Currently in Foreclosure with that expecting to double.

-85% of All Loans Created from 2002-2006 had some type of Infractions or Violations.

-Record High Homes Values lower then mortgages amount owed

-It will save the Home Owner's Home

-It can Stop Foreclosures and Short Sales

-This Will Equal the Refinance Boom

-This Will Fix our Economy, and Save Home Owners!

A Good Loan Modification:

-Someone suffering from the reset of an Adjustable Rate Mortgage (ARM)

-Someone who has a Negative Amortization (Neg Arm) loan

-Someone whose home is worth less then what is owned 

-Someone who has had to care for a family member which affected their income for a period of time or Medical Bills

-Someone who has been Attempting To Sell a home for an extended period of time and simple cannot get it sold

-Someone that has Rental Properties that are sitting vacant because tenants cannot be found.

-Someone who has been affected by a Divorce

-Someone who has been the victim of Predatory Lending

-Any Mortgage loan behind or Not and Commercial

-Any Loan Created with Stated Income

-Option Arm loans

-Client Suffered Income Loss or Reduction

-Client was misrepresented

-A Major Federal Infraction Exist in the loan

-A Minor Infraction Exist in the loan

Loan Modification is the long term Solution to Home Owners Across America.

Helpful Questions we ask the homeowner:

-How did the entire loan process go for you?

-Was there any misrepresentation by the broker/lender?

-Did anything change during the processing of your loan?

-Did the mortgage fees seem reasonable to you?

-Did you ultimately get the loan you were expecting?

-Did the signing process go as you has expected?

-Did you receive copies of your loan documents at signing?

-Did the closing agent point out the Right to Cancel forms and leave you copies?

Documents Needed:

-Authorization Form (sign by Borrower and Co-Borrower)

• If more than one mortgage is present on the house, then a separate authorization form must be completed for each loan.

-Financial Worksheet

• Completing the financial worksheet via electronic copy is preferable. You may also print the form our web site and complete the process manually, as an alternative.

-Complete set of Loan Docs for 1st Mortgage

-Complete set of Loan Docs for 2nd Mortgage

-1st Mortgage Statement

-2nd Mortgage Statement (if applicable)

-Hardship Letter (preferably handwritten). Must be signed and dated.

-Last 2 years of w-2's

-Last 2 years tax returns (ALL pages)

-Last 2 current paystubs

-Last 2 months of personal bank account statements and assets (401k, CD's, etc. ALL pages)

-If self employed, last two months of business bank account statements (ALL pages)

-Other income statements (Social Security, Disability, Unemployment, Retirement, Public Assistance. Include ALL pages, including award letters)

-Property tax Bill and copy of the Homeowners Insurance (Hazard and Flood)

-Lenders may ask to see other bills (cable, water, mobile phone, etc.)

List of Homeowner Hardships:

• Adjustable Rate Mortgage reset- Payment Shock
• Illness of the Borrower
• Illness of the Borrower's Family Member
• Curtailment of Income
• Loss of Job
• Abandonment of Property
• Property Issues
• Inability to Sell the Property
• Inability of Ownership Delays
• Reduced Income
• Failed Business
• Job Relocation
• Death of the Borrower
• Death of Spouse or Co-Borrower
• Death in the Family
• Incarceration
• Divorce
• Marital Separation
• Military Duty
• Damage to Property (natural or unnatural disaster)

Notice that "My Realtor lied to me" and "My loan officer/broker lied to me" are NOT on the list.

Documenting the hardship is very important to the loss mitigator and will be verified during the approval process. Without proper documentation, the client's file may be flagged as fraud. You definitely do not want that to happen for obvious reasons, and it will slow down the process to a snail's pace. There are no "stated hardships"! It needs to be legitimate and verifiable.

For Home Owner to complete

Recently updated and expanded - please download all files for your records.

• 4506T
• Authorization Form 1
• Authorization Form 2
• Authorization Form 3
• Financial Worksheet
• Hardship Explanation
• Homeowner Acknowledgement of Consideration for Attorney Services
• QWR - Qualified Written Request
• Required Documentation for Forensic Audits

General Forms

• Financial Worksheet Print-Only PDF
  NEW!  Financial Worksheet Excel Spreadsheet
• Hardship Letter

We are a Real Estate Solution Company.