Integrity First Financial

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General Frequently Asked Questions

1. What is Loan Modification?

It is a permanent change that is made to an existing loan agreement. The changes normally take place in one or more terms of the existing mortgage. The results are simple and the borrower can afford the payments and avoid foreclosure.

2. Are there any changes to the Late Charges during the Loan Modification?

Yes, the Late Charges are waived off in case of a Loan Modification.

3. Can the lender inspect the property before Loan Modification?

Yes, if the lender thinks that it is necessary to inspect the interiors of the property to verify whether the inner physical conditions of the property can affect the borrower’s ability to repay adversely, the lender can do that.

4. Is there a new basis interest rate during the Loan Modification?

Yes, there is a new basis interest rate. It is 200 points above the average monthly yield on the treasury securities of US and is adjusted to a 10 years constant maturity.

5. Can I not myself approach the lender for Loan Modification?

Yes, you can and if it works, it will be great! But, there are two basic issues:
Lenders normally do not have well trained loan officers and cannot efficiently negotiate and cannot properly set up a loan modification. Such a scenario causes gap of communication, adding to the stress of borrower.

Most of the lenders are interested in recouping the potential loss rather than keeping a customer for long term via a renegotiated mortgage agreement. They work for their own benefit, so approaching them requires some precision, an approach which will show them the benefits of loan modification for both the parties.
If you want to be certain with success and to stop foreclosure on your home, Service Loan Modification is for you.

6. As there any similarities between Loan Modification and Debt Consolidation or refinance?

NO. Debt Consolidation does not apply to the mortgages. It applies to non-secured debts like credit cards. In case of refinance there is down payment and other associated fee to be given to the lender. Refinance may also not be the option if the equity is too low or the current loan is too high compared with the sinking market value of the property. Loan Modification is simple restructuring of the existing loan.

7. What documentations are required for the process to start?

Documents related to your financial condition, hardship letter, mortgage details and income are required by the legal professionals to draft the application which the lenders need for approval.

8. How long does the process take?

In case of FHA approved loans, it is as low as two weeks or a couple of months . The process time is also depending on the lenders for their loan medication program, support and service. It may take from 3 weeks to 3 months. The foreclosure proceeds or the sale of the home are halted by the lender in the mean time.

9. What do you look for in clients?

We can help anyone in financial trouble, but certain conditions can make our job easier. Ideal clients are those who:

  • are already in foreclosure
  • have received a notice of default
  • have an adjustable-rate mortgage that has already increased
  • have negative amortization loans
  • are experiencing financial hardship due to bad loans or predatory lending

 
10. What are the hardships that one needs to go through for loan modification?

One must go through either of the following hardships in order to qualify for a loan modification:

  • Adjustable Rate Mortgage Reset - Payment Shock Illness
  • Loss of Job
  • Reduced Income
  • Death of family
  • Incarceration
  • Failed Business
  • Job Relocation
  • Divorce
  • Marital Separation
  • Damage to property (Natural Disaster or Unnatural)
  • Military Duty
  • Medical Bills

11. What is the guarantee that the home will not be taken away by the lender once the borrower goes for loan modification?

As we said, 95% of the cases are successful but, there are situations when loan modification process fails because of certain causes or reasons. They can be summed up as:

  • In case the value of your house is less than the money you owe, loan modification may not be successful.
  • In case you are very late in applying for the loan modification, the application may not be accepted.
  • You are not in hardship.

12. What is the process of loan modification?

The loan modification process has the following four steps:

  • Consultation: It is the first stage where after you consult with us, we review the case to find if, the case is suitable for loan modification.
  • Paperwork: In this next step, we ask for certain documents like income proof, bank statements, loan agreement, hardship letter, monthly expense sheet and then determine the best approach that can be taken.
  • Negotiation: We will then make a draft and send the application to the lender to start negotiation on the application for loan modification.
  • Approval: Once we reach an agreement with the lender, we will send the revamped agreement to you for approval.

13. How to Apply and Qualify For a Loan Modification?

To apply for loan modification you need to fill up the simple form on the right (see the “Get Started Today!” section). To qualify for loan modification, you need to do the following:
Present your income versus expenses chart in front of the lenders and prove that you can easily afford the monthly loan payments if they are reduced.
There are certain financial hardship rules set by the lender. You need to qualify for those.
You need to prove to the lender that you have failed to repay because of the current financial hardship. This can be done by showing your previous payment history.
You also need to provide the bank statements to show your good expenditure habits and also to show that you will have emergency funds in case you fail again.
You need to show your financial responsibility with the help of your tax payment receipts.

14. Can I cancel the agreement at any time and get the refund?

Yes, you can. The unearned money can be refundable at any time upon written request by you (the principal) if you decides to cancel the agreement. We are entitled to retain any earned fees for services actually performed or rendered on your behalf which were properly performed within the stated timeframes.

15. Can you help unemployed homeowners?

No. You will need a source of income to qualify for a loan modification.

16. Do you count the income of people who are living in the home but are not on the title?

Yes. We consider the total income of the household, not just the homeowner.

17. Do you have any preferred lenders?

We work with all lenders, but the results vary with each one. The results depend not just on your lender, but also the specifics of your case and financial situation

18. Can you help me with properties that I'm not living in or currently renting out?

Yes

19. What disqualifies a client from your program?

We cannot help people who have no source of income or have no proof of hardship.


20. Can you help clients who have received a Notice of Trustee sale?

Definitely. The Loan Modification can prevent foreclosure up to a few days before the actual transfer sale date. However, if you are thinking of getting help, please don't wait until you have received a notice of sale.

21. What are the charges for loan modification?

For the entire loan modification process, we charge a low attorney fee. This is a lot of savings compared with the refinance cost if this could be done by lenders or mortgage brokers. Besides, nothing is worth more than saving your home.

22. Do I need to pay for your services in advance?

Yes. You are paying for legal representation. It works as a legal retainer, as it does for any legal service. However, we do offer payment plans.

23. How do I pay?

You can pay with cash or a cashier's check, MasterCard, or Visa credit cards.


24. Do you collect the advance fee to work on loan modification if I already received the Notice of Default?

Yes. You are paying for legal representation. It works as a legal retainer, as it does for any legal service. However, it will be fully refunded if loan modification or any other alternatives to stop foreclosure does not work for you.

Contact Us

INTEGRITY FIRST FINANCIAL SERVICES, LLC © 2010
60 Lincoln Highway, Edison, NJ 08820
Tel: 732-662-9780 | Toll Free: 866-963-6443 | Fax: 732-662-9781

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