Care Facility Loan Modification
Why should you choose www.CareHomesUSA.com to help you with your loan modification?
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We know your business. We review care facility financial statements day in and day out. We know exactly what concerns the lenders when they process loan modifications for care facilities. There are unique factors associated with the loan modification for a residential care home, which factors other loan modification specialists might not be aware of or totally ignore.
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Attorney drafting and review. Our company’s legal consultants with over 25 years of combined experience in transactional and contract law will personally draft or review all paperwork and correspondence we send to your lender. Due to time constraints and other factors, you usually only have one shot at a loan modification. We make sure that you give it your best shot.
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Money Back Guarantee. We are so confidant that we can help you that we will refund 100% of our collected fee if we fail to modify your loan.
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Back up plans. Loan modification is not for everyone. You need to have a backup plan before you even consider a loan modification. www.CareHomesUSA.com offers backup plans. Our experienced brokerage team will formulate a plan to help keep you out of foreclosure. If your lender rejects your loan modification application, we will assist you to sell your business assets and lease out your property, or arrange a short sale to mitigate your loss. Our ultimate goal is to stop foreclosure and find the best solution for care home owners.
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Affordability and flexible payment schedules. Call Today for a Free Pre-Qualification Analysis.
Five Ways to Modify Your Loan
1. Waiving or reduction of delinquent balance.
If late penalties account for most of your debt, this can be a viable option. Your lender can reduce the amount you owe in late charges, or if you’re lucky, even write it off altogether. They can also add it to your principal, so you won’t have to pay it up front.
2. Reduction of interest rate.
Sub-prime lenders, with their notoriously high interest rates, are the reason why many people are facing foreclosure. This is why interest reduction is one of the most common forms of loan modification. With a lower interest rate, you can better handle monthly payments and stay current on your mortgage.
3. Extension of term.
Your lender can also add years to your loan term, allowing you to spread out the payments. This may be the best arrangement if your income has changed and the payments have become unmanageable. Most lenders will agree to this change because they technically don’t lose any money—they’ll simply get it in smaller installments.
4. Shift to fixed-rate plan.
Most people who fall behind are in adjustable-rate mortgages. This means the interest rates are determined by market indicators and can change from month to month. A fixed-rate mortgage, on the other hand, uses the same rate for the term of the loan and is better for the long run. Because it’s more secure, you’re less likely to be affected by economic slowdown.
5. Reduction of principal.
In some cases, it may be cheaper for your lender to simply reduce the amount you owe. This isn’t very common, since they still lose money in the process. It’s usually granted when the costs of undergoing foreclosure or a short sale are greater than the amount they can write off.
If late penalties account for most of your debt, this can be a viable option. Your lender can reduce the amount you owe in late charges, or if you’re lucky, even write it off altogether. They can also add it to your principal, so you won’t have to pay it up front.
2. Reduction of interest rate.
Sub-prime lenders, with their notoriously high interest rates, are the reason why many people are facing foreclosure. This is why interest reduction is one of the most common forms of loan modification. With a lower interest rate, you can better handle monthly payments and stay current on your mortgage.
3. Extension of term.
Your lender can also add years to your loan term, allowing you to spread out the payments. This may be the best arrangement if your income has changed and the payments have become unmanageable. Most lenders will agree to this change because they technically don’t lose any money—they’ll simply get it in smaller installments.
4. Shift to fixed-rate plan.
Most people who fall behind are in adjustable-rate mortgages. This means the interest rates are determined by market indicators and can change from month to month. A fixed-rate mortgage, on the other hand, uses the same rate for the term of the loan and is better for the long run. Because it’s more secure, you’re less likely to be affected by economic slowdown.
5. Reduction of principal.
In some cases, it may be cheaper for your lender to simply reduce the amount you owe. This isn’t very common, since they still lose money in the process. It’s usually granted when the costs of undergoing foreclosure or a short sale are greater than the amount they can write off.
- Loan Modification Request Form
Submit this form today. We will provide you a free loan modification consultation.
How does Loan Modification Affect My Credit Score
There’s no single answer for this question—it all depends on how far behind you are and the kind of mortgage loan modification you’ll be granted.
Possible Positive Outcomes
Technically, since you’re not borrowing any money, a home loan modification won’t hurt your credit score. If you’re paying less in interest, you have a smaller debt burden. And since most lenders prefer an interest rate reduction, there’s a pretty good chance that a mortgage loan modification will improve your credit score. The implications are even better if your lender reduces part of the principal, although this is less common. The reduced principle amount amount will show up on your report as a smaller loan, which can improve your credit score.
Uncertain Factors
Unfortunately, it doesn’t always happen that way. If your lender reports the home loan modification to the credit bureaus as paid for less than the original amount owed, it will count against your score. If you’re already in foreclosure, the impact on your credit can be substantial. Of course, compared to a short sale or a foreclosure, a home loan modification is still the best way to maintain your credit standing.
Tax Consequences
The IRS announced in 2007 that loan modifications would no longer be classified as “prohibited transactions.” This applied to all loans originated from January 2004 to July 2007, the peak of the sub-prime boom, and those due to adjust from January 2009 to July 2012. If your mortgage falls under these categories, you won’t have to file a 1099 declaring the change as taxable.
Possible Positive Outcomes
Technically, since you’re not borrowing any money, a home loan modification won’t hurt your credit score. If you’re paying less in interest, you have a smaller debt burden. And since most lenders prefer an interest rate reduction, there’s a pretty good chance that a mortgage loan modification will improve your credit score. The implications are even better if your lender reduces part of the principal, although this is less common. The reduced principle amount amount will show up on your report as a smaller loan, which can improve your credit score.
Uncertain Factors
Unfortunately, it doesn’t always happen that way. If your lender reports the home loan modification to the credit bureaus as paid for less than the original amount owed, it will count against your score. If you’re already in foreclosure, the impact on your credit can be substantial. Of course, compared to a short sale or a foreclosure, a home loan modification is still the best way to maintain your credit standing.
Tax Consequences
The IRS announced in 2007 that loan modifications would no longer be classified as “prohibited transactions.” This applied to all loans originated from January 2004 to July 2007, the peak of the sub-prime boom, and those due to adjust from January 2009 to July 2012. If your mortgage falls under these categories, you won’t have to file a 1099 declaring the change as taxable.
Care Home Owner Loan Modification FAQ
Q: Can you help full time care home owner?
A: Yes. As long as your care home income is stable.
Q: Do you count the income of family members who are not on the title?
A: Yes. We consider the total income of the household, not just the property owner.
Q: Do I need to be delinquent or behind on my mortgage?
A: No, but it will make things easier. Loan modification is meant to help people in financial hardship, and banks are more willing to help borrowers in trouble.
Q: Do you have any preferred lenders?
A: We work with all lenders, but the results vary with each one. The results depend not just on your lender, but also the specifics of your case.
Q: Can you help me with properties that I'm not living in or currently run as a care home?
A: Yes.
Q: What do you look for in clients?
A: We can help any care home owner in financial trouble, but certain conditions can make our job easier. Ideal clients are those who:
• currently behind in mortgage payment
• have ability to afford new mortgage payment
• are in short term financial difficulty, and have a prior good payment history
• are in an adjustable rate mortgage, in a high interest fixed rate mortgage, or have
negative amortization loans
• have low or no equity in your property
Q: What disqualifies a care home owner from your program?
A: We cannot help care home owner who has no income (neither from care home business nor from other jobs) or has no proof of hardship.
Q: Is it too late to help care home owners who have received a Notice of Trustee sale?
A: Definitely not! The Loan Modification Department can prevent foreclosure up to a few days before the actual transfer sale date. However, if you are thinking of getting help, please don't wait until you have received a notice of sale.
Q: What interest rates can I expect after a loan modification?
A: The results vary from case to case, but it’s common that you can get an interest rates between 3% and 6%.
Q: Will my lender need other documents (such as credit scores) to assess my application?
A: Besides the pay stubs and tax forms, some lenders will ask for at least two months of bank statements. But that is strictly to determine your income. Credit scores are never used for qualification.
Q: Can my lender give me any compensation?
A: No. Lenders don't offer commission like on normal loans, so there's no compensation involved.
Q: How much you charge? Do I need to pay for your services in advance?
A: Our fees are based on your mortgage payment amount, and the complexity and urgency of your situation. We offer a money back guarantee, in some cases, if we cannot get you a work out agreement with your lender(s). Yes, you do need to pay us one payment to start the loan modification process, but we do accept installment payments.
Q. How long does it take to complete the case once we fill out the paperwork?
A: Anywhere from 10 days to several months. This depends on the stage of delinquency you are in and your financial position. Typically it takes 30 - 90 days to obtain a resolution.
A: Yes. As long as your care home income is stable.
Q: Do you count the income of family members who are not on the title?
A: Yes. We consider the total income of the household, not just the property owner.
Q: Do I need to be delinquent or behind on my mortgage?
A: No, but it will make things easier. Loan modification is meant to help people in financial hardship, and banks are more willing to help borrowers in trouble.
Q: Do you have any preferred lenders?
A: We work with all lenders, but the results vary with each one. The results depend not just on your lender, but also the specifics of your case.
Q: Can you help me with properties that I'm not living in or currently run as a care home?
A: Yes.
Q: What do you look for in clients?
A: We can help any care home owner in financial trouble, but certain conditions can make our job easier. Ideal clients are those who:
• currently behind in mortgage payment
• have ability to afford new mortgage payment
• are in short term financial difficulty, and have a prior good payment history
• are in an adjustable rate mortgage, in a high interest fixed rate mortgage, or have
negative amortization loans
• have low or no equity in your property
Q: What disqualifies a care home owner from your program?
A: We cannot help care home owner who has no income (neither from care home business nor from other jobs) or has no proof of hardship.
Q: Is it too late to help care home owners who have received a Notice of Trustee sale?
A: Definitely not! The Loan Modification Department can prevent foreclosure up to a few days before the actual transfer sale date. However, if you are thinking of getting help, please don't wait until you have received a notice of sale.
Q: What interest rates can I expect after a loan modification?
A: The results vary from case to case, but it’s common that you can get an interest rates between 3% and 6%.
Q: Will my lender need other documents (such as credit scores) to assess my application?
A: Besides the pay stubs and tax forms, some lenders will ask for at least two months of bank statements. But that is strictly to determine your income. Credit scores are never used for qualification.
Q: Can my lender give me any compensation?
A: No. Lenders don't offer commission like on normal loans, so there's no compensation involved.
Q: How much you charge? Do I need to pay for your services in advance?
A: Our fees are based on your mortgage payment amount, and the complexity and urgency of your situation. We offer a money back guarantee, in some cases, if we cannot get you a work out agreement with your lender(s). Yes, you do need to pay us one payment to start the loan modification process, but we do accept installment payments.
Q. How long does it take to complete the case once we fill out the paperwork?
A: Anywhere from 10 days to several months. This depends on the stage of delinquency you are in and your financial position. Typically it takes 30 - 90 days to obtain a resolution.
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HEALTHCARE BROKERS NETWORK License # 01765068
• Los Angeles, CA
Expertise & Excellence • In Healthcare Brokerage
Los Angeles: 310-742-4298 San Gabriel: 626-264-8121
Ventura: 805-384-0706 San Jose: 408-905-4935
Copyright © 2004-2009 Healthcare Brokers Network. All rights reserved.
Site Map | E-Mail
HEALTHCARE BROKERS NETWORK License # 01765068
• Los Angeles, CA
Expertise & Excellence • In Healthcare Brokerage
Los Angeles: 310-742-4298 San Gabriel: 626-264-8121
Ventura: 805-384-0706 San Jose: 408-905-4935
Copyright © 2004-2009 Healthcare Brokers Network. All rights reserved.