FREQUENTLY ASKED QUESTIONS

Listed are the most frequent questions we receive. If you do not find the answer to your questions, please Contact Us .

Why should I use your services to do my loan modification?
While we advocate self-help for homeowners who need a loan modification, we realize that there are many people, just like you, who need the professional services of a real, reputable, and honest company. Lifeline has a team of professionals to assist you, so if you feel you need professional help…call Lifeline.

Is there a charge for speaking or calling Lifeline about my loan modification?
No, we offer a no charge consultation where our expert staff will speak to you about your situation and review your case to let you know if you are a good candidate for a loan modification.

What is a loan modification?
A loan modification is a change in the terms of a loan, interest rate, amortization term, or principle balance, which is agreed to by the lender and the homeowner. These new, legally binding terms permanently replace the original mortgage terms and can give you a fresh new start in managing your mortgage payments. The outcome of a loan modification is a more affordable payment for the homeowner.

What is a foreclosure?
Foreclosure is a legal process that terminates the owner's right to a property and allows a lender/bank to sell or take possession of said property due to a non-payment of a loan that is secured by that property. A loan modification is one way to prevent your property from being foreclosed on.

Will a loan modification stop foreclosure?
A large number of clients will find themselves using a loan modification to stop foreclosure. If you can currently make your regular payment, but you can’t catch up with the past-due amount, we will negotiate with your lender to move any past-due amounts, including interest and escrow, into the unpaid principal balance. This new loan amount will be re-amortized over a new period of time.

What happens during a Loan Modification?
During a loan modification the terms of your mortgage are re-negotiated to bring the interest rate down to a percentage that fits into your budget and the monthly payment no longer presents a severe strain on your ability to meet your other financial obligations.

What are the advantages of getting a loan modification?
With loan modification, it can: reduce your interest rate, lower your monthly payments, possibly reduce your loan balance, fix your interest rate, prevent foreclosure, and get you back on track, so you can stay in your home.

How long does a loan modification take?
Every loan modification situation is unique and follows its own timeline. Typically a loan modification is completed within one to three months from the time we have a complete package ready to present to the lender.

When should I begin the loan modification processes?
As soon as possible, these situations tend to be extremely time sensitive.

Do I need to qualify in regards to Credit Score and proof of Income?
There are no qualifying credit score factors to get started. However, proof of Income (Pay Stubs, Bank Statements and other financial information) will be collected as it helps the lender determine what future payment you can comfortably afford.

I am considering a loan modification - should I continue to make my monthly payment?
We encourage everyone who is considering a loan modification to continue making your monthly mortgage payments. Even if you’ve already missed a month or two, sending a payment to your lender sends the right message that you don’t want to lose your home. It is also important to protect your credit, which can be damaged considerably from missing one or more mortgage payments.

Can I modify my 1st & 2nd mortgages at the same time?
Yes, it is actually recommended to do both at the same time, as the rates on the 2 mortgage are usually higher than the 1st, and the lenders will look at the combined payments.

Will I have to pay all of the late fees and penalties?
Most lenders will either waive the late fees or allow you to include any outstanding amounts into the loan modification.

Why should I work with Nexus Advantage Services?
Nexus Advantage is not just another loan modification company, we are dedicated to providing financial solutions for homeowners, now and for years to come. The members of our management team are well versed and experienced in the mortgage industry, with years of experience. Their knowledge and in-depth understanding is a huge benefit when you consider that your house is most likely the largest asset you’ll ever own.

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What Is a Hardship and how do I qualify or prove this?
A hardship could be a difficult or unpleasant situation in your life that has affected you in a way that hinders your ability to maintain your financial obligations. A hardship may arise from a variety of situations such as a divorce, unexpected medical expenses, a death in the family, termination of employment that lead to a reduced income, illness, adjustable mortgage reset to a higher mortgage payment, an unforeseen emergency, etc. You will be asked to write a hardship letter explaining your situation accompanied by documentation that supports the difficult situation.

Am I required to meet with the lender during paperwork?
No, all paper work including negotiation with your lender will be handled by our qualified staff and experienced processors.

If am qualified for loan modification, what happens to my adjustable rate?
Most loan modifications change your loan to a fixed rate.

Can I request a loan modification even if am not late on my payments?
Yes. Most lenders now qualify a loan modification to borrowers who foresee a possible problem in their future payments.

Can I contact my lender directly without using a company to negotiate my loan modification?
You can always contact your lender directly; although we have heard countless stories of frustrated borrowers who have tried to do so unsuccessfully. Most end up being declined for a loan modification, or they give up because of the endless red tape. By using a company like Lifeline, you can dramatically increase your chances for success. We have the ability and experience to present your case in a compelling manner and negotiate the terms in your best interest, without the personal attachment.

I’ve missed several payments. Can I still qualify for a loan modification?
Even if you are delinquent on your mortgage, you could be eligible for a loan modification. A Lifeline specialist will evaluate your situation and help you determine what’s best, whether it’s a loan modification or another alternative (short sale, cash settlement, forbearance). If these terms sound scary and confusing, be assured that Lifeline can guide you.

Having a negative equity in my house has prevented me from refinancing. Will it also prevent me from modifying my loan?
No. Having a negative equity can still qualify you for loan modification.

I've already talked with my lender and they just want all their money. Can you still help me?
Yes. Most of our clients have already experienced this kind of inflexibility from their lenders before calling us. Please note that our integrity and professionalism have allowed us to effectively negotiate where most others fail. We have negotiated positive solutions for a myriad of desperate homeowners. We will use our experience and expertise to your advantage.

Why will the lender agree to a modification?
Banks are not in the real estate business. A lender's objective is to make sure it gets your monthly payment on schedule so that it can make money from your interest payments. If you or your family are facing hardship and are unable to make the payment then it is in the lender’s best financial interest to do whatever is necessary to help, especially if the property has little or no equity (i.e., you owe more than the property is worth), in which case the lender stands to lose quite a bit.

Why can’t I just refinance?
The financial market place has changed dramatically over the last 12 months. It is much harder to qualify for a new loan now than it was last year because of the banks’ tightening of guidelines and not accepting as much "risk". Loans are made based on credit, debt, income, and loan to value (amount owed compared to the appraised value of the property). If any of those factors are not perfect it has become nearly impossible to attain a loan

Foreclosure Timeline
Once you become 90 days past due the Mortgage Company will typically issue a NOD (Notice of Default). After you receive this notice your mortgage company will hire an attorney and begin the Foreclosure with the Court system. The Foreclosure must follow a strict procedure laid out by your State laws. Eventually the house will be sold at auction if nothing is done to stop the Foreclosure.

What is predatory lending?
This term can apply to all aspects of the mortgage industry and refers to the practice whereby a creditor puts a borrower into a loan that the borrower will probably not be able to repay. Federal laws like the Truth In Lending Act ("TILA") and the Real Estate Settlement Procedures Act ("RESPA"), as well as many state laws, require that creditors disclose certain terms of loans to borrowers, and when those terms are not disclosed or are inaccurately disclosed these laws provide severe monetary penalties against these creditors. Predatory lending tactics include the classic bait and switch. Both federal and state law prohibit the mortgage industry from providing different loan terms to people based on race, sex, ethnicity, or other protected class. Such a transaction may be subject to a cause of action under the Unruh Civil Rights Act or other law. Equity theft also called equity skimming, refers to the situation whereby the same creditor refinances the same property with the same borrower multiple times uses up the equity in the borrower's property.

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