Specialized Financial Solutions, LLC

The Truth About Florida Loan Modification, Revealed By Florida Mortgage Expert

Florida based Mortgage Broker Marlon Baugh reveals Loan Modification Secrets at a new web site that is full of free reports, a home buying guide and free mortgage calculators. The site is designed to give Florida residents all the facts about Loan Modification and other mortgage options so they can make an educated decision when obtaining a mortgage.


Pembroke Pines, FL -- (ReleaseWire) -- 01/13/2009 -- If you live in areas such as south Florida and you bought a house within the last 5 years, then you are probably having equity issues, such as no equity or worst negative equity, which mean you are upside down and now owe more to your lender than your house is worth.

“With Loan Modification as popular as it is right now, Florida residents have to be even more careful about choosing a Loan Modification Company," says Marlon Baugh, a Florida based mortgage consultant. “But if you are being denied for a refinance loan for reasons such as low credit scores, owe more than your house is worth, late mortgage payments or even foreclosure, then a loan modification could be answer you been waiting for.”

Now what is a loan modification?

A loan modification is a restructuring and renegotiation of an existing mortgage loan. Now most of us have done some type of loan modification in the past, but just don't know it, for example; If you have ever called your credit card company to ask for a reduction in your interest rate, then you have done loan modification. Getting you mortgage modified however can be a little trickier.

A loan modification can include any or a combination of the following;

-Forgiveness of missed payment or adding them to the back end of the loan to get the home owner up to date.

- If the home owner has an adjustable rate mortgage, then the modification could freeze or reduce the interest rate.

-Reduction in the principal balance to match the current market value.

Most homeowners are unaware that a loan modification is an option if they don't qualify for a refinance and that can also be used to prevent foreclosure and save their home, as well as preserve their credit. Loan modifications are granted especially to individuals that can demonstrate a current hardship, such as job loss or serious illness.

The first step of the loan modification is to go thru a brief interview either with your lender or a loan modification consultant. If the home owner's case proves to be a strong candidate, then the lender will request a financial statement that will break down all the income and expenses of the home owner. Once this financial statement is completed then the homeowner will need to package this with a hardship letter, along with supporting documentation such as tax returns, pay stubs and bank statements and send to their lender. From this package the lender will then make a determination for the new loan terms which could take up to 60 days.

The loan modification is becoming one of the mortgage industries most popular tools for preventing a foreclosure and creating a win-win situation for both lender and homeowner. As the typical terms will normally be more affordable for the home owner and will put them back on track and the lender gets to collect its interest payments in a timely fashion and won't have to go through the expense of foreclosure.

When foreclosures are prevented then families get to keep their homes, the surrounding neighborhood maintains the value and the lender maintains a profit.

It is important for home owners to understand that loan modifications are on a case by case basis, on the individual level as well as the lender level, each lender have their own guidelines for loan modifications and with saying that, no one or company can guarantee any results.

If you choose to hire a loan modification company to handle you modification and they make these types of guarantees, then don't do business with them, as the lender has the final say. Don't get me wrong, but while I want home owners to be aware of unscrupulous loss mitigation companies that are looking to take advantage of people, there are also reputable companies that can present the home owners case the right way to the lender that maximize their chances of getting the modification approved. The lender only gives the homeowner one chance within any 12 month period whether it's favorable or unfavorable, so choosing a legitimate loan modification company can be beneficial.

Florida - based mortgage expert Marlon Baugh specializes in providing mortgage information to Florida residents that allows them to make informed decisions about their mortgage financing options and learn the insider secrets that can save them thousands of dollars over the life of their loan.

Marlon Baugh is available for interviews and will welcome all your loan modification or other mortgage related questions.

Call 954-678-5796 Ext.1 for a Free No-Obligation Consultation or visit http://specializedfinancialsolutions.com/lendersexposed.htm