In order to apply for a LBPS loan modification, you should be experiencing a financial hardship or are pretty certain you will in the near future. You may qualify for as much as a 50% reduction of your monthly mortgage payments.
A financial hardship can be a reduction of your current income due to job loss or reduced salary for example. In addition financial hardships can be due to high interest rates that you can no longer afford or even medical emergencies. Or if your home’s value is now considerably less than you owe, also known an upside down mortgage.
If you’ve missed any of your monthly payments they may be able to get your passed due payments forgiven or at the very least added on the back end of your current loan. LBPS loan modification program also states they may also be able to get you a “break” from your payments so you can give yourself some breathing room to get your finances stable.
There are few things you need to know as a consumer if you are planning to apply for a LBPS loan modification program.
As a loan servicing company, they make their money based on homeowners like you making your payments every month. However, if you should become delinquent with your monthly mortgage payments the loan servicing company stands to make even more money.
Here’s why. Once you begin to miss payments, late fees begin to accrue. Eventually, your interest rate will also be increased. Even if you are in a “trial modification” period, the fees will continue to add up. It is in their best interest financially if you, the homeowner, goes into foreclosure.
You see they will make money either way, so giving you a loan modification is not something they really care about in the end. Remember, your mortgage lender stands to lose a lot more money if your home goes into foreclosure than they would if they modify your loan instead. On the other hand loan servicers, lose money if they do a loan modification.
Instead they often offer what’s called a “forbearance agreement” for a specific agreed upon period of time. This essentially would keep your current payment and interest rate the same plus you would pay an extra amount each month to get caught up on your past due payments. After the agreed upon time expires, you may be offered a LBPS loan modification. But the fees and other costs associated with the modification are usually so high the homeowner will eventually end up losing their home to foreclosure.
Now imagine trying to deal with this kind of a situation with a company that at the end of the day, really has no financial incentive to give you a loan modification. The good news is, if you are a borrower whose loan is being serviced by LBPS or any other loan servicer you can get help. Consider the services of a qualified loan modification company. Reputable services have extensive background experience and lawyers who know how to negotiate on your behalf.
If you’re in danger of losing your home, don’t expect a lot of hand holding or help in the form of a LBPS loan modification. If you do not want to go through the process alone you can always avoid the stress and consider hiring a loan modification service for help.
Call The Loan Modification Hotline at 888-766-3693