Loan Modifications

Loan Modification companies are popping up all over the place. Billboards, signs on the side of the road, radio commercials, emails, bus stop ads, they are everywhere! But...are they really the "one size fits all" answer they are touted to be? We wanted to find out so we contacted a few companies here in the Phoenix area that specialize in loan modifications and asked them to send us a few samples of "successful" modifications. To our surprise this is what we found. Take a close look at these approved from Chase and CountryWide. Pay close attention to the areas that are highlighted. Click HERE to view.

The single biggest factor that will make or break your application for an Arizona Loan Modification is your income/expense on a monthly basis.

For example:

Total Take Home Household Income: $4000.00/Month
Total Household Expenses Including Mortgage(s): $5500.00/Month
Total Mortgage Payment(s): $2000.00/Month

The bank will look at this situation and realize that you are -$1500.00 at the end of each month and you could only afford a payment of $500.00 per month.
There is a next to ZERO PERCENT POSSIBILITY  you would get approved for a modification.
If you are working with a company who is claiming that they can make this happen, ask them for successful approval letters where this has happened. You will not see any!

However, if we take the same example and your monthly expenses $4600.00 then you would probably would be able to get a modification as the bank would have to reduce your payment by $600.00 which is possible.

Typically a loan modification makes sense if your home $50K is upside down and less.
One of the problems with the myriad of Arizona Loan Modification companies is that they do not give you the real value of your home. That makes all the difference in the world. If you paid $300K for your home and are under the impression it is worth $260K, then a modification makes financial sense. If the home is actually worth $150K, at 5.75% and assuming values appreciate to what you owe in 7 years, it is going to COST YOU $147,000.00 to keep your home. Alternatively, renting an equivalent home would cost you around $995.00 SAVING YOU $63,420.00.