Q: Is a loan modification a refinance?
A: No, a loan modification is not a refinance. You keep the same lender and most likely the same loan number, and there are no closing or settlement costs like a refinance. The lender will send you the modification agreement explaining the new modified loan terms. After reviewing the terms you sign and return the modification agreement to your lender to complete the process.

Q: Why would my bank be willing to modify my loan?
A: Banks are in the business of making money and in some situations, to minimize their losses on their investments (your mortgage). A bank would be willing to consider a modification when they can justify that doing so would cost them less than going through the foreclosure process which carries very high costs. Banks are NOT in the business of managing and selling property.

Q: How do I know if I qualify for a modification?
A: There are two extremely important elements, a financial hardship and verifiable income. You must be able to explain to the lender the reason(s) why you are unable to afford the current payment. In addition, you have to demonstrate that you do have a verifiable source of income if the lender does modify your payment. In the Appendix section of the kit you will find both the Making Home Affordable hardship letter, with easy-to-use checkboxes for selecting the appropriate financial hardship, and a Financial Information Worksheet so you can document your income as well as the expenses being paid each month. Your lender will require both a financial hardship and a verifiable source of income to consider your request for a modification.

Q How long does a loan modification take?
A: The time it takes to complete a loan modification depends on how busy the lender is and the complexity of your loan modification. You can expect a modification to take anywhere from 1 month up to 4 months.

Q: Can I modify other properties besides my primary residence?
A: Yes you can modify second homes, investment properties and commercial properties.

Q: Do I need to be behind in payments in order to do a loan modification?
A: No, under the Making Home Affordable Plan (which went into effect March 4th, 2009) homeowners who are current on their mortgage but have a financial hardship may also qualify.

Q: How can I get this kit for free?
A: Mortgage Mod 101, LLC clients are assigned a unique promo code at checkout. Earn $50 each time someone you refer uses your promo code at checkout. Refer 4 people and you have not only paid for the kit but made a profit! You may refer an unlimited amount of people and will be paid $50 on every single one!