FAQ

Is there a charge for 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 circumstances 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 principal 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 goal of a loan modification is to arrive at 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.

What happens during a Loan Modification?
During the loan modification process, the terms of your mortgage are re-worked to bring the monthly payment to a level that no longer presents a severe strain on your ability to meet your other financial obligations. One or more terms can be changed, such as the interest rate or amortization term, and in some cases a floating rate can be converted to a lower fixed rate for up to the remaining life of the loan.

 

What are the advantages of getting a loan modification?
The goal of a modification is to lower your monthly payment, so that you can get back on track financially and stay in your home. If you qualify as a candidate for loan modification, it is a much preferred alternative to the financial burdens created by being required to sell your home quickly or losing your home to foreclosure.

How long does a loan modification take?
Although it typically only takes us 5 business days to help you prepare your package, once you submit the package to your lender 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 you submit your complete package to the lender. With the current volume of loan modification requests being submitted to lenders on a daily basis, any errors in submitting the proper documents can cause significant delays in the response time from your lender. This is where the services offered by Lifeline Loan Solutions play such an important part in ensuring a successful outcome when working with your 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.

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

Will I have to pay all of the late fees and penalties?
As you work with your lender, it is possible that they will either waive the late fees or allow you to include any outstanding amounts into the new balance of the loan modification.

What if I have more than one mortgage or if I have Investment properties?
This is very common. We can help you prepare the appropriate package for each of your mortgages, as many lenders typically request different documentation depending on whether the property is your primary residence or an investment property.

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 their 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.

Why should I trust Lifeline?
Lifeline Loan Solutions is not a loan modification negotiation company. We are solely dedicated to providing a solution for homeowners looking for help in preparing a bank ready package. The members of our team are well versed and experienced in the mortgage industry, with years of experience. Their knowledge and in-depth understanding as it pertains to the currently accepted guidelines for loan modifications is a huge benefit when you consider that these rules and regulations seem to be changing on a daily basis.

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What Is a Hardship and how do I qualify or prove this?
A hardship can best be described as 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, a reduction in income, a dramatic increase in expenses out of your control, illness, an unforeseen emergency, etc. You will be asked to write a hardship letter explaining your situation accompanied by documentation that supports the difficult situation.

Will the lender need to do a physical inspection of my home?
No, in the majority of cases, the lender does not need to do a physical inspection of the home. Their main concern is qualifying the current status of your income and expenses to determine your eligibility for a loan modification.

Am I required to meet with the lender during paperwork?
No. The lender/servicer will typically require that all documentation be submitted to them via fax or email. Once they have reviewed your package, most lenders will contact you by phone or mail to request any additional documentation they might require and, if you qualify, to review their modification proposal.

I currently have a prepayment penalty; will I have to pay this?
Typically, no prepayment penalty will be assessed at the time of a modification

If I qualify for a loan modification, what happens to my adjustable rate?
Most loan modification proposals will change your loan to a fixed rate, either for a specified time period or in some cases for the remaining life of the loan.

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.

Will a loan modification reflect negatively on my credit?
Typically, neither the process itself, nor the actual loan modification will affect your credit. However, if you are or have been late on any payments then your credit will already have been affected. The good news is if you are able to complete the process and resume making regular monthly payments your credit will begin improving based on the new on-time payments.

Having negative equity in my house has prevented me from refinancing. Will it also prevent me from modifying my loan?
No. Having negative equity does not disqualify you for loan modification.

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How much time do I have?
Time is definitely not your friend in this situation, which means you need to act as fast as possible. With the passage of each day, it becomes harder to work out an agreement with the lender.

Why will the lender agree to a modification?
Banks are not interested in taking back your home. 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 work out an arrangement, especially if the property has little or no equity (i.e., you owe more than the property is worth) and the lender stands to lose quite a bit.

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Why can’t I just refinance?
The financial marketplace has changed dramatically over the last 18 months. It is much harder to qualify for a new loan now than it was in years past because the banks have tightened their guidelines and are 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 ideal it has become nearly impossible to attain a loan.

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. Remember that time is of the essence, so the worst thing you can do is just do nothing at all.

 
My rate is adjusting soon and I won’t be able to make the higher payment. Is a loan modification an option for me?
Many of our customers face this same situation: an adjusting rate that would result in an unaffordable payment. We are finding that more and more lenders are willing to work with borrowers who do the right thing and reach out for help before a problem occurs. There is no need to intentionally miss a mortgage payment in an attempt to qualify for a loan modification. Talk to a specialist about the details of your situation today.