1. Who is eligible receive a Loan Modification?
Loan modification companies and lenders conduct a thorough screening of borrowers beforeapproving requests to modify a loan. Borrowers who have deep financial issues but are still deemed able to make the payment are eligible to have their interest rates changed and loan terms adjusted. Upon aopproval, the borrower will benefit with an overall lower monthly payments and a change in some loan terms.

2. Will lenders be willing to modify all loans?
The answer to is dependent upon the borrower's ability to convince lenders that they are worthy of such loan term modifications. Currently, a majority of lenders would be against in giving in to borrower's demand, however with the economic crisis deepening from the recession, things can change quickly.

3. What are the initial steps in loan modification?
For mortgage modifications, the borrower will start everything. He or she must be proactive in contacting lenders or reputable loan modification companies to negotiate about a possible change in rate, terms, and/or principal reduction. It is best to be honest in answering questions and provide the lender with all the requested documents.

4. Why is a Forensice loan Audit Necessary?
A FORENSIC LOAN AUDIT is considered by a majority of industry professionals to be the "holy grail" to ensuring a loan modification with your lender(s).  Also known as a Mortgage Audit, the primary focus is to determine if, in fact, there are federal violations.  The probability is a resounding yes as almost three out of four loans audited in the last few years, and close to 95% of all subprime loans have serious RESPA and TIL (Truth In Lending) violations.  Once, these are discovered and brought to the lenders attention, most lenders opt to renegotiate the loan terms towards a more attractive and affordable rate to avoid litigation!  The objective of the review is to reveal any predatory loan practices or violations and get a successful loan modification. 

5. Once the lender has approved the loan modification, what's happens next?
The Lender might be content with their offer to you, but this does not mean the borrowers should give in or accept it. So, before agreeing, it is best to consult with a lawyer or a mortgage loan specialist to see if the loan modification offer is just a temporary delay from imminent foreclosure.

6. Ask the loan modification company if they have experience in mortgage lending? 
This is always a good question to ask because it displays their level of education and experience as well as how they run their business.

7.   Do I have to miss payments to get help? 
Every lender has different conditions, but experience has shown that banks are prioritizing their loan modification applications so that homeowners who are nearer to foreclosure are being handled first.  However, if you see a problem coming in the near future you should begin the mortgage loan modification process right away.  Currently, many lenders are reaching out to homeowners who are not late but will be faced with adjustable rate increases soon.

8. My loan is with one of the "failed banks", what do I do?
  In reality, it is still business as usual for most of these banks, the new owners have , in some cases, are eager to clean all the defaulted loans off their books so they appear healthier on paper to the FDIC.  So, this could really help your cause.

9. What is an Attorney Backed Loan Modification Company?
An Attorney-backed company is one that is experienced and legally takes steps to make the lenders respond in a timely fashion. They typically conduct a Forensic Loan Audit of your original loan documents so that their experienced Loan Modification Negotiators can use this information as ammunition when negotiating for a rate reduction and/or principal reduction.  The experienced and trained professionals at attorney-backed loan modification companies follow all State and Federal foreclosure laws.  As you can see, extra steps are necessary to satisfy their clients and are not expensive. Although you will be doing business with professionals.  

10. Who should I Use?
Some successful loan mod companies are members of the BBB, with their local chamber of commerce, have referrals and customer testimonials, have a money back guarantee, can give you real examples of loan modifications they've recently done, put everything they say in writing, and has an attorney on staff. In addition, you should get contact information from your loss negotiator who is working your loan modification.