CRITERIA FOR LOAN MODIFICATION
Loan balances need to be 100k or more
Rate on fix needs or be 6% OR HIGHER
ARM NEEDS TO BE HIGH OR ADJUSTING
OPTION ARMS CLIENT NEEDS TO BE ABLE TO PAY MORE THAN MINIMAL PAYMENT
CLIENT KNOWS WE CHARGE A FEE OF $1250 -1500
(1250 for Mortgage BAL: 100k-200k and $1500 for Mortgage BAL over $200,000).
AND NO LEADS WILL BE TAKEN IF BORROWER DOES NOT KNOW WE CHARGE FEES
Criteria of Loan Modification
1. Borrower is late on the mortgage or is going to be late in the current month.
2. Has financial hardship paying his/her mortgage payments.
3. Borrower is ready to take initiatives in order to put the mortgage back in shape.
4. Property is upside down and he is willing to stay in the home and save it against any defaults.
Examples of hardship:
Loan has adjusted and the payment is no longer affordable.
Rate is adjusting on an ARM and the borrower is already facing hardship to make the payments at the lowest rate.
Loss of income due to divorce, death in the family, illness, loss of job, etc
Examples of what are not hardships:
Moderate income loss leading to changes in lifestyle, fewer luxuries, or loss of other conveniences.
Not understanding/ being misled about the terms of the loan they accepted.
STRUGGLING TO MAKE PAYMENT THE LENDER WILL NOT MODIFY FOR THIS
Who qualifies for a Loan Modification!
1. No Equity 2. Loss of Income
3. Interest Rate Change 4. Financial Hardship
5. Unable to catch up! 6. Loss of Employment
7. Foreclosure Pending 8. Delinquent Payments
9. Bankruptcy 10. Debt Ratio
11. Loan to Valve 12. Insurance Problems
Benefits of Loan Modification!
1. Save your client from a Foreclosure or Selling their Home!
2. Save your client from Moving!
3. Save your client from paying a First / Last and Security Deposits!
4. Save your clients Credit Rating
5. Reduce your client’s monthly payments!
6. Reduce your clients Interest!
7. Reduce your clients principal debt
8. Reduce your property taxes and insurance premium!
9. Turn your client into a bankable refinance!
10. Convert to a Fixed Rate Loan
Payout will be sales based: $20-$100/sale
Payout increases by 20% if center gives good numbers of leads and meet the quality parameter.