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Welcome!!!!!
We at GLC’s Mortgage Modification Department would like to welcome you and thank you for your trust and confidence. In this package you will find several forms and requirements. It is important that you provide us with all of this information. Failure to do so will delay this process and your mortgage modification.
Let us first explain what a Mortgage Modification is:
A loan modification is when the original loan that is secured by a residence has terms that make it impossible for the homeowner to continue making the payments, and therefore risking the loss of the residence. Loan modifications are not the same as debt consolidations, refinancing loans, or even forbearances. Instead, they are long term solutions for rising interest rates or other hardships that are threatening to overwhelm the budget of a homeowner. And in fact, loan modifications will stop foreclosure proceedings and instead reinstate the loans as they are being modified.
Why are the banks willing to renegotiate? There are several reasons:
1. All or portion of the outstanding principal and interest, fees, and cost may be rolled into the loan modification, therefore no lost revenue to the lender and since its spread over a long period of time it doesn’t pose a problem to the borrower.
2. The lower payment ensures that the repayment of the loan.
3. Foreclosure is avoided and the expense and loss of revenue.
4. A modification protects your credit rating and it also help the lenders show less defaulting loans in their portfolios.
There are three components to your mortgage modification plan. The first is the initial process and the filling out of forms. The second is the qualification process to see if in fact you qualify. Since you have started the process you have already passed the initial screening. The third component is legal representation. Your file will be forwarded to our legal department. It’s at this point that your case will be negotiated with the lenders.
In closing we again would like to welcome you. If you have any questions please feel free to call (530) 332- 9527.
Sincerely yours,
Mortgage Modification Department | |
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