FAQ
We know your situation is unique; our mortgage help counselors are ready to review your situation and answer any specific questions you may have. In the meantime, below are some of the more frequently asked questions:
- Do you have to be behind to qualify for assistance?
No! Whether you are current or behind on your mortgage, have good credit or bad credit, equity or no equity in your property, we have programs to provide you the help you need with your existing mortgage payments.
- Are there any programs providing relief that do not require a loan modification?
Absolutely! Loan modifications have some great benefits in today’s marketplace but represent only one of many programs that are available to current homeowners. Loan modifications are not appropriate for all situations and generally are ideal after all other options have been exhausted.
- What is a loan modification?
A loan modification is a mutual agreement between a homeowner and the lender that alters the terms of an existing mortgage contract. Loan modifications can permanently reduce the interest rate, reduce the principal balance owed, extend the term of the loan, or a combination of these. If a homeowner is behind on their mortgage, a loan modification can additionally bring the borrower current on the loan and stop any foreclosure proceedings.
- Will a Loan Modification Increase my Principal Balance?
Loan modifications do not have any closing costs associated with them which is an additional benefit when compared to a traditional refinance. If you are currently behind on your mortgage, any past due payments can be re-amortized into the modified loan increasing the principal balance. Though not very common, some loan modifications may actually reduce the principal balance depending upon the value of the property.
- How do I know if I qualify?
Most homeowners are eligible for multiple programs and just aren’t aware of their options. Mortgage Help Hotline focuses on educating borrowers so they can better choose which assistance program would best serve their needs. Our mortgage help counselors offer a free consultation and let you know what you qualify for.
- How do I get a principal reduction on my mortgage?
Principal reductions are not easily obtained but can be an option depending upon your situation. Principal reductions generally will require the assistance of an attorney through a loan modification or litigation.
- How much can I save on my current mortgage?
Savings are relative to the principal amount a homeowner owes on the loan and the current interest rate. Some programs can save homeowners up to 50% off their existing mortgage payment and lower the interest rate to as low as 2%.
- What if I don’t have equity or am upside-down on my home?
There are a couple refinance programs that can help if you are upside-down on your home but more than likely you will be a great candidate for a loan modification if you don’t have any equity in the property.
- What are the costs associated with your program?
Mortgage Help Hotline offers a complimentary consultation. Depending upon what programs a homeowner may qualify for and decide to participate in may or may not require engaging the services of a mortgage professional or attorney.