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The MFN Group

 

  

Modify Your Mortgage

Keep Your Home!

Get Your Payments Lowered!

Use Our Attorneys to Negotiate For You!

Get Your Interest Reduced!

We can help even if you are on time with your payments,

and even if you have good credit or bad credit.  There is a fee

for this service, but it is less than a refinance and often

less than paying for moving costs, 1st month and security deposits!

Read the list of scenarios we can help!

ANY Borrower that has a Hardship and can’t get a loan- Here is an example list of hardships that lenders consider during the loan workout process:

  • Adjustable Rate Mortgage Reset - Payment Shock
  • Illness
  • Loss of Job
  • Reduced Income
  • Failed Business
  • Job Relocation
  • Death of Spouse or C0-Borrower
  • Death
  • Incarceration
  • Divorce
  • Marital Separation
  • Military Duty
  • Reduced Income
  • Medical Bills
  • Damage to Property (natural disaster or unnatural)

Borrowers That Are Upside Down on their Property- When a borrower owes more than what the home is worth, the bank stands to lose a lot of money if they have to take back the house by foreclosure. Ex: Borrower, did 100% Financing 2/28 2 Years ago for a purchase of $500,000.   Now the house is worth $400,000.   If the bank has to take back this property they stand to lose close to $200,000.   They have lent out $100,000 more than what the property is worth now, plus they have to sale it, pay attorney fees to foreclose, pay a real estate agent to sale it, and discount the price drastically to get rid of it within 30-60 days. Right now the banks are willing to do anything possible, to keep that borrower in the house, and lower their interest rate and a lot of times cut the principal balance off of the borrower’s loan…

Borrowers That Have an ARM that has adjusted and cant get a loan- This is the most common loan modification situation.  When a borrower’s ARM has adjusted, sometimes their payment might have gone from $2000 to now $3000.  With the way the economy is today, the majority of industries are struggling as well.  Borrowers are making less money than they did a few years ago, and a payment increase due to an adjustable rate mortgage is a hardship where the borrower will most likely go delinquent on their payment.   The bank doesn’t want to foreclose and take back another home, so they will be willing to work on a case like this to keep their monthly interest coming in, and their asset performing.  On average most of these rate reductions is between 5-6% on 3 to 5 year terms, that can save the borrower from foreclosure and it’s a win-win for both parties involved.

DTI-  Best Case scenarios should show a Debt to Income Ratio between 65 & 110%.

Does the Borrower Have to be Late?- No, the borrower doesn’t have to be late on their mortgage payment to have a loss to mitigate.   The Loan Mod Application will show an affordability factor for the borrower.  This will document to the bank that this borrower can’t live their life with the income they make and the outgo that is documented.   The are many hardships, but if the borrowers are using credit cards, or savings to pay for their mortgage payment, then there is a loss to mitigate, because more often than not, that borrower is going to start going delinquent and the bank will have to take back that house.

Pay Option Arms- There are a lot of A-Paper and Alt-A Borrowers that did Pay Option Arms.  Most of these Pay Options are starting to index and payments have already adjusted.  So it is not just the subprime borrower that is a loan Mod Candidate.  The borrower that can’t afford their minimum 1% Neg Am Payment isn’t a loan Mod Candidate.   This borrower is most likely a Short-Sale Client though, and that is a loss to Mitigate.  The Borrower that has a Pay Option, and there fully indexed payment has adjusted from 6.5 to 8.5 and could afford a 6 % but can’t get a loan due to changing guidelines, is a Loan Mod Candidate..

Overall Big Picture- What it really comes down to, is that the banks are in the business for performing loans when it comes to real-estate.   Right now, the bank’s loans aren’t performing like they should.   The banks realize the market is going to stay bad for the next 2-3 years.  The cost to foreclose on properties is becoming way too expensive and they are losing millions of dollars rapidly.  The answer for them is to accept less monthly interest and keep their mortgage loans performing for the next few years until the market comes back.   This is why this product is so important to our economy, and to the well being of your borrowers.  It’s a win-win for all 3 parties.  On opportunity for the borrower to keep their house, the banks to keep their loans performing, and loan agents to sale another product, and make money in a market that is getting extremely tough to fund loans…

Less than 65% LTV- The Bank realizes that the borrowers can refinance into a hard money loan with that much equity, or if they had to take back the house they can break even, or make money on the foreclosure of that property.

For Questions and Concerns contact me direct:

Greg Nichols - The MFN Group

916-258-3043 email mfn1@comcast.net