What is a Loan Modification?

According to the U.S. Department of Housing and Urban Development a loan modification is a permanent change in one or more of the terms of a mortgagorā€™s loan, which allows a loan to be reinstated and results in a payment the mortgagor can afford.

Because a loan modification is designed to help struggling homeowners keep their homes certain requirements are mandated.

A loan modification:

  • must result in a fixed rate loan
  • must fully reinstate the loan
  • must include all unpaid past due payments
  • must waive any unpaid late fees
  • may result in a permanent change of interest rate
  • may extend the loan term

Procedures for a Loan Modification

  1. We are required to assess your financial condition. 
  2. We perform a retroactive escrow analysis at the time the loan modification to ensure that the delinquent payments being capitalized reflect the actual escrow requirements required for those months capitalized.
  3. We must verify the property has no adverse physical conditions.
  4. Home repair costs may not be calculated into the Loan Modification.
  5. Mortgagee must comply with State and Federal disclosure laws or notice requirements, including whether recordation is necessary to maintain first lien position requirement.
  6. Loans reinstated using a Loan Modification within the past 3 years requires written justification prior to a subsequent modification.
  7. Subsequent reason for default cannot be related to the previous reason for default.

For a complete explanation on these or any other loan modification questions you may have please contact us at 678-990-8600 and speak with one of our loan modification specialists today.

To start your loan modification please apply now!

Sunday, June 16, 2019

Application Options

We offer a variety of loan application options, including a Quick Application, a Standard Application, and a 5 Step Application.

Click here to get started!

Neighborhood Mortgage

1835 Lockeway Drive, Suite 306
Alpharetta, Georgia 30004
Phone: 678-990-8587
Fax: 678-990-8601
Email: info2@nloans.net
NMLS: 138234

Neighborhood Mortgage is a Mortgage Lender In GA, AL, SC and TN, a Mortgage Broker in FL and a HUD approved Lender.

Georgia Residential Mortgage Licensee # 16837 , Alabama License 21766, Florida MBR858, SC #MB-1120000, South Carolina Branch #407671,  TN - 148818
National Mortgage Licensing System #138234