July 14, 2009

Loan Modification

Posted to Kathy Mardiros, Real Estate Tips

One of the principles on which Legacy Real Estate & Associates was founded was to make a better future for Legacy clients and their families. No where is this better exemplified than with the Loan Modification Service Program. This program begun by Bill Aboumrad, owner, was designed to assist homeowners to stay in their homes through modification of their existing loan.

Homeowners may be facing foreclosure due to loss of a job, increase in their monthly payment on an adjustable rate loan or other hardship. The Legacy program headed by Abe Summers begins with a client interview to access the situation – what are their housing costs, what is the family income, etc. After the initial interview it is determined whether or not a loan modification might be an option by reducing the interest rate on the loan, extending the loan term or possibly even reducing the principal balance on the loan.

Abe reports that as a result of the recent government programs most lenders are now responding to loan modification requests but it does depend upon the investor and whether or not the end investor is participating in the programs or not. Many homeowners try to modify the loan on their own with little success as a result of not completely understanding the questions to ask and the supporting documentation needed to successfully complete the loan modification package.

Legacy’s Loan Modification Program has been successful in helping many people who were well on their way to losing their home to foreclosure. In many cases, Legacy has been able to stall the foreclosure sale while working through the loan modification process. One example was a client 11 days from the trustee sale – the sale was postponed and Legacy was able to get her a reduction in her monthly payment of about $1800 per month!

Legacy does not charge an advance fee for this service but a fee is payable once a loan modification has been successfully completed for the homeowner. There is currently legislation in the California Congress which will prohibit companies from collecting a fee for loan modification services prior to the modification being delivered. This has been Legacy’s policy from the beginning.

The Legacy Loan Modification Program has been successful and continues to be successful and advances Legacy’s mission of providing a better future for clients and their families.

Posted by:Kathy Mardiros