A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage.

Lenders have realized that in some cases it is better for them to work with current borrowers to lower payments or possibly improve terms in order to keep homeowners in their properties. The average foreclosure can cost a lender from 35-50% of the value of a property, so keeping borrowers in their homes is a good option for everyone.

To initiate a repayment plan, the homeowner should contact their mortgage lender’s customer service department and ask if a loan modification is an option.  The phone number of your loan servicer should be on the statement that you pay each month.  If the person is unable to answer this question, the homeowner should ask to speak with either the Loss Mitigation department, Mortgage Modification department, or H.O.P.E. department (different lenders have different names for these departments)

The homeowner should be prepared to submit a Financial Statement to the lender that documents their financial ability to make back payments.  For a list of documents the homeowner should be prepared to submit to the lender, click on the “Preparing Your Financial Statement” tab.

The lender is likely to also require documentation to determine the current home value.  Guarantee Real Estate Sales Associates are able to create a report that shows recent closed, pending, and active sales in your neighborhood and determine a reasonable value for your home.  There is no fee for this service.  Please contact us if you would like one of our Guarantee Short Sale Specialist (GSSS) agents to make an appointment with you to determine the value of your property.

• Reduces the payment a homeowner is required to make on a monthly basis and may reduce the principal balance of the loan

• Requires that a homeowner 'qualify' for the new payment and will often require full documentation. Lender has to be actively pursuing modifications.

IMPORTANT NOTICE: Guarantee Real Estate is a real estate broker. The service we provide is to assist in the sale or purchase of real property.  We do not negotiate with lenders in an effort to modify mortgages.  It is strongly recommended that you seek appropriate professional tax or legal counsel regarding the transfer of real estate.  Guarantee Real Estate is not associated with the government and our service is not approved by the government or your lender.  Even if you use our service, your lender may not agree to change your loan.  If your home is listed for sale, please do not consider this as a solicitation to list your property..