Recently, Kevin Hardin at Thomson Law revealed 7 secrets about Arizona loan modifications that most people won’t tell you. If anyone could explain the ins-and-outs of loan modification, I think Kevin can – his firm has helped thousands of Arizona residents understand the process of getting an Arizona loan modification over the past couple of years.
Permanent Loan Modifications Not Permanent?
Here is the #2 secret Kevin revealed about loan modifications – permanent loan modifications are not permanent.
Highlights in the video include:
We hear in the news about getting a trial mod. Lenders will get you on the phone, tell you they understand that you are behind on your payment and then offer for you to pay $600 a month for the next three months while they get all the paperwork “taken care of”.
The problem with this is that it is a trial loan modification and there are no contracts that you have signed, there are no legal documents and after a six month period and you end up getting denied, you are going to be very upset.
Hardin further goes on in the video to talk about what happens if you actually get a “permanent” loan modification.
Let’s say that you actually get awarded a “permanent” loan modification. You are excited and think that you finally got your permanent loan modification. Well, it is not permanent. When you read the loan modification documents, you are going to find that your new interest rate is going to start at something like 2 or 3 percent — for the first year. Then after another year, it goes up another percent. Until it gets to a market rate – and let’s say that market rate is 5.5%. At that point, it is going to be a fully-amortized payment (PITI) and so you want to ask yourself today: could you afford a fully amortized payment on the home you own today.
Odds are, you probably can’t.
Which means with a loan modification situation like this all you will have achieved is to get a very temporary solution to a permanent problem.
Have more questions about loan modifications? Contact the Arizona loan modification experts.
Thomson Law PLC
2701 East Camelback Road, Suite 150
Phoenix, Arizona 85016