SvetLana Cole - Full Time Licensed broker with "Charles Rutenberg Realty"

3135 Book Rd, Naperville, IL 60564

“Equal Housing Opportunity”

Cell 630-447-8382

Loan recast of your mortgage

Request your mortgage re-amortization.

Right now, you are paying a high rate of interest, plus late fees and expenses. After your loan is modified, you will be paying less interest, and no fees.

The longer your bank can charge you full fees and interest, the more money your bank will make.

Your bank is in business to make money - profit.

Your bank is not a charity. It is trying to maximize its profit from its dealing with you. That is why your mortgage bank will seem to delay and frustrate you with your application for modification, until you feel like you will go crazy.

Your bank will take an unreasonable amount of time to respond to you, and will use even the most insignificant basis for asking you to make corrections, which will be followed by more delays.

The "dirtiest" of banks will use things like multiple levels of "negotiators," and will prevent you from having the contact information for the negotiators.

If your loan is federally insured, then you can expect an even worse time, since the bank will be confident that no matter how long it takes, the American taxpayers will foot the bill for the delays and extra expenses that you don't cover.

We are hoping for legislation that will freeze the balance owed on a mortgage while the mortgage company processes the request for modification.

This legislation would rocket the mortgage loan modification approval process into fast gear. We are not optimistic about getting the legislation in the near future. We have ways of accelerating many of the loan modification requests, based on the various interests involved.

1. If your mortgage payment is more than 31% of your income, then you might be eligible for a loan modification or loan recast

Lower your interest rate, your principal, your payment amount, to an amount you can afford.

2. Anyone can apply for a mortgage loan modification.

That does not mean though that everyone gets it.

There are a lot of details involved in your lender's decision to approve your loan modification or to deny it.

It is mostly based on your income and the sources of your income. It is also based on the price that your home is worth now and your actual loan amount and many other details.

3. Yes, mortgage loan modification stops foreclosure, once the loan modification is approved.

If you get your loan modified and start paying agreed monthly payments, the foreclosure case will be dropped against you and your home.

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This is one of the greatest ways to save your home and stop foreclosure at the same time. As long as you keep up with your new mortgage terms - there will not be any risk in losing your home.

4. The cheapest way to do mortgage loan modification is to do it yourself.

Is it the best way, I cannot say. It depends on your persistence, ability to communicate, be organized, follow the directions well, have time to do so.

We met a number of people who did loan modification themselves with success, and we've met people who failed also.

If you do not speak good English, if you do not have time, if you do not rely on your ability to do so, if you are too nervous - the best way for you is to hire a professional who will handle it for you.

Note: Always make sure that the person you hire is a professional and knows what is he/she is doing, because you are not only entrusting them with your time and money, you might be wasting your last chance on them of saving your home.

5. The cost of mortgage loan modification is Free - if You Do It Yourself.

It can vary quit a bit if you hire someone else to do it for you. We can refer you to a free agency which can help you with your modification.


We know the market. We have the knowledge. We are here to help you.

6. Your loan modification will take as long as your lender/bank will decide to take.

They go through a lot of short sales and loan modifications these days. No one can rush them. They are in power. You have to wait for their decision.

7. This is the list of the documents that is needed to apply to modify your loan:

  • Authorization to discuss your loan with 3rd party (if you hire someone to do your loan modification) If you handle your own loan modifications no authorization needed.
  • 2 years federal tax returns, including all pages, W-2 forms, etc. Last year alone is enough for starting the process, but try to have the other return available in case the bank asks for it.
  • Your bank statements (past 3 months)
  • Last 2 months of your pay stubs
  • Documents proving your other sources of income
  • Hardship letter
  • Financial statement. Each bank will usually have its own financial statement form, which we can normally provide for you if we are processing your modification application.

8. When you are choosing to hire 3rd party to modify your loan, ask them what kind of a degree they have?

They should have some kind of a degree connected to real estate and at least some understanding of how it works.

If they do not have any kind of a degree (or one you cannot verify) you should consider it as a RED flag.

Be smart - think ahead.

9.The best way to make sure that the 3rd party you hired to modify your loan is doing what they supposed to do is to check on them.

Do not rely 100% on them, do the check-up yourself, so you will know if there are any problems early on. Time is the most valuable asset for you right now.

Here is how to check on the 3rd party you hired to do your loan modification:

"Just call your mortgage company (you can find their phone number on the monthly statement you receive) and ask them to give you the full history of your file."

They always register all the information and every contact in your file.

It is that simple.

The representative you will talk to, will tell you all the actions that have been done regarding your modification.

He/she will tell you the exact dates and time authorized 3rd party people called them and what was said, what paperwork was sent or faxed to them and what is the status of your modification.

If there is no information in your file and authorized individual never initiated contact with your lender - you will know that you've just been scammed.

But at least you will know early on about it and you might have another chance to hire us to help you.

10. Be aware of loan modification scams.

We come across people almost every day who were scammed by 3rd party so called "loan modification negotiators."

They take money from people who need loan modification, from people who put their trust in them, upfront, then they file bankruptcy or they simply dissolve the company over night, or they disappear - phone is disconnected, no such address etc.

I am not saying that all the companies that offer their services to modify your loan are scammers. Of course not!

There are a number of good, trustworthy companies out there who are doing a great job.

What I am saying is - be careful whom you hire and whom you trust with the future of your home.

Foreclosure Settlement or BAD check?

About 96,000 borrowers will receive an additional check to correct errors made in initial payments sent to compensate them for foreclosure mishandlings. The payments are part of a nationwide settlement. Some borrowers were issued amounts that were too low, the Federal Reserve announced, and the new checks will make up the difference. Borrowers should cash the original check along with the new check when they receive it. The new checks will be mailed by the end of the week. The Federal Reserve announced last week that about 96,000 of the 217,000 checks had wrong amounts mailed to Goldman Sachs and Morgan Stanley borrowers. Rust Consulting is the company handling the payments. When the payments were first issued in April, many borrowers said the checks they received wouldn’t clear. At the time, the incident sparked an apology from the company for those who had problems trying to cash their checks. The Federal Reserve vowed to closely monitor the payments going forward. The reimbursement checks stem from a settlement with federal regulators and 13 mortgage servicers. The servicers agreed to provide $3.6 billion in cash payouts to eligible borrowers who were foreclosed on in 2009 and 2010. About 4.2 million home owners who underwent foreclosure in 2009 and 2010 may be eligible to receive payments ranging from $300 to $125,000 as part of the settlement.

Source: “Fed Admits Mistakes in Mortgage Settlement,” The Associated Press

Mortgage modification – How can your lender help you out in this?

Have you fallen behind in loan payments? If this is your situation, then you can approach your lender for loan modification. Before you may do so, make sure you know "How to do a loan modification" so that you can succeed in it.

Mortgage modification is a process wherein a homeowner and the mortgage company works together so as to change the terms and conditions of your present loan.

Modifications include lowering the interest rate, reducing the monthly payment and sometimes both. Thus, the loan payments will become within your means. However, loan modification is not easy and requires a lot of patience for the homeowner.

Get the loan papers ready before you may contact your lender for modification. If the modification helps you save your precious home, then the process is worth the effort.

Request your lender for loan modification – Some tips to follow

Here are discussed some tips that you should follow while requesting your lender for loan modification.

1. Look for the market value of the property – It is important on your part to enquire about the market value of your property. It may happen that you don’t know the actual worth of the property. In such a case, you may take the help of a property evaluator Licensed Realtor or Appraiser who will tell you your property’s worth. This may comprise of physical assessment of your property. Besides, the professional evaluator will also evaluate the market trends so as to know your exact market value of your property.

2. Talk with your mortgage lender – If you are facing difficulty to manage with the payments, you may talk with your lender for loan modification. Mortgage modification is the process of altering the terms and conditions of the loan so as to make the loan payments within your affordability. You will have to make your lender understand about the financial problems that you’re facing. Once you are able to convince him, he may agree for loan modification.

3. Know about the Hardship letter – The hardship letter is one of the most important documents for loan modification. There are many homeowners who apply for loan modification in order to avoid foreclosure. However, they don’t remember to provide the hardship letter for loan modification application. A hardship letter informs the lender about your financial worries and the reason why you want to opt for loan modification. As such, include all the details about your finances along with convincing your lender that it is not possible for you to make the monthly payments in future without loan modification.

4. Prepare a suitable pay-off plan – You need to prepare a suitable pay-off plan in the loan modification process so as to repay the home loan. While your lender goes through the hardship letter, they may ask you how you’re thinking to pay off the loan. You will have to provide correct information in your hardship letter so that you may be able to request the lender for a mortgage payment that is within your affordability. Inform your lender about the next date when you’ll make the payment on your home loan. This will make him understand that you really want to pay off the home loan.

If you have an adjustable rate mortgage and you want to change to a fixed one, you may talk with your lender about it. Mention about your present income in the hardship letter and how you want to repay the home loan. Thus, the more information you may provide, the easier you’ll find to get approval for mortgage modification. Ask to have your mortgage recast.