UTAH MORTGAGE MODIFICATIONS

Are you up at night, worrying because your adjustable rate mortgage is going to increase and you can't afford the new payment? Maybe you owe more than your house is worth? Or you're unable to get a new loan because your credit is bad? Maybe you're 30 days late on your mortgage or foreclosure proceedings have already begun.

We can help you. We specialize in helping people find alternatives to foreclosure and the loss of their home. Our objective is to make sure that you realize no matter how bad your situation might be, foreclosure may be avoided if you take prompt action. Together, we may be able to resolve your delinquency without a foreclosure sale of your home.

We will sit down with you and review the alternatives available to allow you to keep your home. The key to avoiding foreclosure is you! Through open communication with our loss mitigation specialists, we can try to help you cure your mortgage default without foreclosure.

Please don't panic just because you have received a Notice of Default - plenty of options remain. The critical factor in determining whether or not you will be able to save your home is to act quickly - before it really is too late to do anything.

What is Loan Modification?

The amendment of the loan to re-amortize (schedule) the remaining balance, and/or extending the current term of the loan in order to possibly reduce the monthly payment, the interest rate and/or loan balance for the borrower to remain in the loan. Many refer to the process as a "Fresh Start."

Loan Modification Home Owner Benefits

• Owner retains the property
• Lowering of monthly payments
• Lowering of interest rates
• Reduction of principle balance
• Past due balances
• Partially eliminated
• Completely eliminated
• Deferred
• Combination of any of the above
• Credit preservation/No foreclosure ramifications
• Neighborhood values are preserved
• Consumer remains a player in the market

What Determines a Qualified Candidate?

• You do NOT have to be behind on your mortgage payment or monthly bills.
• Hardship either Medical, Disability, Death, Marital, Financial, etc.
• Change of loan terms
• Loss of employment
• Alteration of household income
• Reduction of business for self employed/stated

Case Studies

Case Study #1
In this example, the borrower was not in default on their mortgage. Foreclosure was an item of concern only to them because they knew they had a change of circumstance. They may have had new medical bills or their loan was going to adjust soon to a much higher interest rate. They decided to take action before their credit was ruined. They modified their mortgage and are saving $792 a month to handle their new bills. Their mortgage company is happy because they will not have to foreclose in the near future.

	Life Before...	Life After...
Mortgage Balance	$286,201	$286,366
Interest Rate	10.00%	6% Fixed
P&I Payment	$2,551	$1,769
Past Due	$0	$0
Months Behind	0	0
Public Notice of Default	No	No
Total Monthly Savings	$0	$792

Case Study #2
In this example, the borrowers are around 5 months late on their mortgage. They have received a Notice of Default and their creditors are calling them daily for payment. They could have a lot of equity in their home but CANNOT get to it because they do NOT qualify for a mortgage refinance. They will lose all their equity and ruin their credit for 7 to 10 years. By modifying their mortgage, the $12,215 they are behind on their payments are brought current even though their principle balance was only increased by $7,436 (the rest was forgiven by the lender). They get to keep their home and their credit profile improves immediately. Their monthly payment is also reduced by $330 per month.

	Life Before...	Life After...
Mortgage Balance	$339,246	$346,682
Interest Rate	8.5% ARM	6% Fixed
P&I Payment	$2,443	$2,113
Past Due	$12,215	$0
Months Behind	5	0
Public Notice of Default	Yes	No
Total Monthly Savings	$0	$330

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