Modification Professor

Q: What is Loan Modification?

A: A procedure whereby a loan payment plan is altered due to hardship of the borrower. This can include a reduction to the rate, term of the loan, monthly payment and/or principal balance. This is handled by the lender’s Loss Mitigation Department. In essence, it is a procedure whereby a borrower renegotiates the terms of his/her current loan with his/her lender. Contrary to belief, lenders do not want to foreclose on a house. With foreclosure at an all time high, lenders more than ever, are willing to modify or renegotiate loans to keep homeowner in their homes. Unlike a traditional refinance your credit score and equity in your home, or lack there of, are not essential in modifying your loan. See Real People, Real Results.

Take a look at the following example:

Current Loan

Loan Amount: $300,000

Interest Rate: 7.5%

Loan Program: 5/1 ARM

Monthly Payment: $2,097.64

After Loan Modification

Loan Amount: $280,000

Interest Rate: 5.5%

Loan Program: 30 Year Fix

Monthly Payment: $1,589.80

Please note: In the above referenced example, a 2.000% rate and $20,000 principal reduction, translates to over a 24.21% or $507.84 decrease in the monthly payment.

Q: Do my monthly expenses need to be greater than my net monthly income?

A: No. Many homeowners, who are having financial difficulty and showing genuine hardship, are in a “negative” monthly financial situation. Meaning, their total monthly expense is larger than their net monthly income. However, to modify your loan and lower your interest rate, you do not need to be in a negative net situation every month.

Q: Can I use the instructional DVD to modify my second mortgage or home equity line of credit, if it’s not with the same lender?

A: Yes. Loan modifications are primarily intended to renegotiate borrowers’ first mortgage loans. First Mortgages generally have higher loan balances and are considered in first position on property Title reports. Therefore, first mortgage lien holders often carry a higher stake in trying to avoid foreclosures. Nonetheless, once your first mortgage loan has been successfully modified using the instructional DVD, we recommend contacting your second mortgage lender to modify your second lien. In many cases, 2nd lien holders have modification procedures in place which may be less extensive and can be performed with much less documentation.

Q: What is the advantage of using the instructional DVD versus just calling up my lender?

A: Most lenders are absolutely overwhelmed by loan modification inquiries. Unfortunately, due to the current economic downturn and the subsequent employment layoffs, many lenders are understaffed and are using everyday banking customer service representatives to answer questions regarding loan modifications. Often many of these customer service representatives are reading a script and are not knowledgeable enough to properly answer your questions over the phone. The instructional DVD will teach you to submit a professional loan modification proposal so that your package goes directly to a loss mitigation underwriter and not just a customer service representative.

Q: Will this DVD just encourage me to use an attorney or mortgage company and not really help me do my loan modification myself?

A: Unfortunately, there are many imitators out there using so called Do-it-Yourself ebooks and DVDs as a form of bait and switch marketing. Modification Professor will teach you EVERYTHING you need to know as well as provide you with all the tools you will need to do your loan modification yourself. Although the instructional DVD was created by Real Estate, Mortgage, and legal professionals, we are NOT a loan modification company and do not refer you to any other companies. We have created the instructional DVD as a means to help American families save their homes, stabilize our Real Estate industry, and make a difference in curing the unimaginable overall economic consequence of continued home foreclosures.

Q: Will I get the same level of quality from this DVD as using an attorney?

A: The instructional DVD was created by a team of real estate brokers, mortgage professionals and real estate attorneys so the information is almost identical if not better than the information most loan modification attorneys use. Modification Professor will teach you the loan modification process both from a legal point of view as well as a banking point of view. In addition, many of the attorney and mortgage based loan modification companies are currently handling hundreds of loan modification requests at the same time. Unfortunately, this means that your package may not get the proper attention it deserves. With Modification Professor, you will be in charge of your own modification package. You will learn exactly what is involved in the process and how to negotiate with your lender directly and effectively. You will learn how to cut through the red tape and quickly get in contact with the decision makers at the bank. Once you have made contact with the appropriate bank representative, the instructional DVD teaches you what to ask for and how to structure your requests.

Q: Do I have to be late on my payments before I request a loan modification?

A: No. Lenders allow borrowers to modify their loans even if they are not late as long as they can prove their current hardship. The instructional DVD will show you how to properly put together the right type of loan modification package which can get your proposal approved without needing to be late. Late payments can hurt your credit rating and should be avoided whenever possible.

Q: Will this DVD show me how to do all the calculations needed for a loan modification?

A: Even better! Modification Professor not only teaches you how to do the calculations needed in your proposal but as part of your purchase, you will have full access to our Loan Modifier software. This easy to use, step by step software will help you with all of your loan modification calculations and provide you with the new proposed interest rate you will need to offer to your lender. Furthermore, it will enable you to print a customized income and expense worksheet which you will need for your proposal.

Q: What kind of results can I expect if I use this DVD?

A: Your lender does not want to own another foreclosed property. Therefore, if used properly, Modification Professor can lower your mortgage rate dramatically and reduce your payments by up to 60%. You can also convert your unstable adjustable loan to a more permanent fixed loan. You can combine a first and second mortgage into one low fixed rate. Of course, results will vary due to different loan amounts, loan types, and interest rates, but our Loan Modifier software will calculate what type of rate and payment you should ask for in your package.

Q: How much can I save by not going through an attorney?

A: The average cost of using an attorney based loan modification service is $3,500. Therefore, you would be saving almost that entire amount by using Modification Professor and doing your loan modification yourself. If approved, the money you will save in your first month’s revised payment will pay for your instructional DVD three to six times over.

Q: How long does the loan modification process take?

A: With Modification Professor, you are essentially doing most of the work for your lender. All your lender will have to do is double check your paperwork and calculations and provide you with their answer. Therefore, if done correctly, a properly packaged loan modification should take between 6 to 8 weeks to complete.

Q: Can I avoid foreclosure by using this DVD?

A: Absolutely. Even if you are technically in foreclosure, you can request to have the process temporarily stopped while you submit your loan modification package. Most lenders will work with you as long as your loan modification package is done right.

Q: Is there any support available should I have any questions?

A: Yes. We provide full customer support with every Modification Professor purchase, either by email or calling our toll-free number. We also provide consultation services to help with the Loan Modification process should you have any questions or want us to double check the package or lender response.

Q: How can I get all the documentation I need for a loan modification?

A: As part of your Modification Professor purchase, you will receive some important documents which you will include in your loan modification package. In addition, we will show you how to obtain other needed documents which are specifically tailored to your property and loan.

Q: Can I modify my loan if I have bad credit or have been late making my mortgage payment?

A: Yes, this is the exact type of borrower a lender is looking for. Loan Modifications have been created to help borrowers who are experiencing a hardship. It works to create a win-win for the lender and borrower. The lender prevents a foreclosure and the borrower not only gets to keep his/her home but also improves his/her financial debt position by lowering the monthly payment, principal balance and interest rate.

Q: Do I need to use an Attorney, Mortgage Broker, or loan modification center to modify my loan?

A: No, this video shows you step by step instructions on how to properly put a loan modification package together. You will learn who to contact, what to say, and how to structure your requests to get the results you are looking to achieve.

Q: In addition to the video, am I obligated to buy anything else in order to be able to modify my loan?

A: No.

Q: After watching the video, if I have any questions, can I contact Modification Professor?

A: Yes, we offer consultation services for you to contact our office and one of our counselors to answer any questions that you may have.

Q: How long is the video?

A: The video is approximately 50 minutes.

Q: How long does the Loan Modification process take?

A: It all depends on your current lender. Normally it takes between 30 to 60 days.

Q: Can I try to modify my loan if I don’t have any equity in my home?

A: Yes, since this is not a traditional refinance you don’t need to have equity in your home to qualify for a loan modification.

Q: Can I try to modify my loan if my home is currently listed as a short-sale?

A: Yes.

Q: Will my Lender charge me fees to modify my loan?

A: It depends on the lender. There may be processing fees involved. Some lenders charge a fee, some don’t.

Q: How much will my payments decrease after I modify my loan?

A: It all depends on your specific situation. The lenders do not have a set guideline as to how much they are willing to reduce payments.

Q: Why would my Lender want to modify my loan to help me?

A: Often a loan modification is a far better return on an investment to the lender than a foreclosure. A successfully completed Loan Modification means the lender is still collecting a payment from you. A foreclosure means they are hit with large costs with no mortgage payment revenue coming in. Banks do not look at this as helping you; they look at it as a positive solution to a very costly and time consuming issue.