Best Homes Real Estate’s mission is to help families stay in their homes to help families who in this difficult economy have suffered a hardship such as a job loss, medical expense, etc., anything that is out of their control. We help families who worked hard all their lives, have bought their home and are now about to lose their home because of this terrible recession that we as a country are going through.

            Best Homes Real Estate is a Full-Service real estate company. One of the services we offer is a seminar discussing loan modifications. A loan modification is a change of terms in a loan with the goal of getting a lower loan payment. Using the guidelines of the Home Affordable Modification Program (HAMP), referred to as the “Obama Plan”, the modification may be available to those borrowers who are already in foreclosure, to those who are not in foreclosure but are behind in their payments, and to those whose payments are current but due to a hardship feel that a foreclosure may be imminent. While there are no guarantees, most borrowers will qualify.

Our job is to assist borrowers in preparing documentation required by lenders for borrowers to qualify for a modification. We will then work on behalf of the borrowers to negotiate the modification with the lender. Again, there are no guarantees, but most negotiations are successful.

Loan Modification Definition: A Loan Modification is a negotiated legal alteration of the terms and conditions of your existing mortgage loan, in order to obtain lower mortgage payments or reduce the loan balance, or both. In today’s declining real estate market in California, refinancing is available to only a select few. Getting approved for a traditional refinance is extremely difficult.

The goal of a loan modification is to change the amount of payment to a level where the borrower can consistently make their mortgage payment as well as pay other bills.

Why Would a Homeowner want a Loan Modification ? The need for a Loan Modification (sometimes called a Loan Mod) is usually caused by a borrowers inability to make payments in the agreed upon time-frame or because the property is worth less than the borrower owes. If the Homeowner has a little bit of equity in the home or is slightly upside down on the mortgage, and if the Homeowners current income is about 5% greater then their total current expenses, then one should consider a Loan Modification.

On the other hand, if the Homeowner is upside down on the mortgage by 10% or more, or if the Homeowners income is 10% less then their current expenses, then they should seriously consider a Short Sale.

Why Would a Banks Accept a Loan Modification ? - Mortgage Banks would much rather settle for a Loan Modification then  foreclose and take your home back.  On average, Banks stand to lose over 50% if they foreclose, and therefore would rather collect lower payments then none at all.  Banks do not want a mortgage to consume an entire monthly budget. They will take the homeowners entire budget into consideration; car payments, cell phone, utilities, credit cards payments, etc.