Example of What You Can Save Modifying with Us

Let us say that you haven’t been paying at all into principal for the 2 years so your balance is the same. You could barely make your payments before your loan adjusted and your rate now adjusted to what was signed in the loan documents: up to 10.2%.

Your payment went from $2,845 per month to $3,825 --- neither includes paying into principal.

Your first reaction is to call your mortgage broker and ask to refinance to a lower rate only to find out your property is now only worth $375,000 and you do not qualify for a loan. You are $75,000 upside down and still have bad credit. Modification becomes your best option (much better than short sale and foreclosure).

Typical Lawyer Negotiated Law Office Loan Modification Results:

Rate Dropped to at or below the original rate: estimate 6% - fixed for 5 – 30 yrs
Balance Dropped to Market Value: $75,000 Savings
Change amortization to 40 yrs instead of Interest Only in order to build equity
New Payment: $2,063 per month

Monthly Savings: $1,782 per month plus $75,000 balance reduction
No Payments for 3 months: Savings of $6,198 in your pocket!!!!
Total savings over 5 years: $187,326 plus equity being built each month
(Late fees are also waived but not included in calculation because they vary between lenders)

Typical Self Modification or Non-Attorney Based Modification:

Rate dropped back to the original rate or a bit lower for 1-5 years: estimate 6.5%
Change amortization to 40 years if you request it, otherwise interest only remains
No principal balance reduction

New Payment: $2,634 on a 40 year term
Assuming they give you the max of 5 years at this rate
Total savings over 5 years: $71,460
Note to Keep in Mind: You still owe more than your property is worth in this scenario