Adjustable Rate Mortgages or ARMs are one of the most dangerous situations for homeowners. Your mortgage rate will be adjusting upward, sometimes as much as 50%, and your mortgage payment will double as a result. For typical Americans, you probably have never seen a 1-year raise above 10%, and a 50% increase in your monthly payments makes your home impossible to afford. As a result, ARMs receive special care from lenders and banks when homeowners are applying for loan modifications.

What is a Loan Modification?

Homeowners with ARMs are the most likely to have ridiculously high mortgage payments, and thus are more likely to default on their mortgage and have their homes foreclosure. Banks know this, and homeowners with ARMs are the most likely group to receive a loan modification.

A loan modification is the process by which your lender reduces your monthly payments so you can afford your mortgage, not miss any more payments, and save your home from foreclosure. A bank may reduce your payments by the following:

- Reducing your interest rate (if it is above 8%) or set to adjust
- Extending the term of your loan, from 30 years to 40 years
- Bundling back payments into the principal, so you won’t owe all past payments immediately

ARM Loan Modification Facts

95% of mortgages that are active can be modified by a homeowner as a form of loss mitigation. Lenders are willing to negotiate with you in modifying your mortgage when borrowers are unable to pay their bill for one or more reasons also known as ‘financial hardships’.

Many lenders wait too long to seek financial help with their mortgage. Once your home is in the foreclosure process, it can be very difficult to get a loan modification, thus it’s very important that homeowners take the steps today to save their home from foreclosure.

A loan modification can take upwards of 60-90 days, and in the majority of our cases, we are able to have past missed payments forgiven and interest rates reduced for homeowners.

Seeking Loan Modification Help?

If you are interested in applying for a loan modification, and want to ensure you receive a loan modification, please fill out our contact form on this page. We have been serving clients nationwide by modifying their mortgages, and saving their homes from foreclosure. 90% of our clients receive a loan modification, and we go above and beyond for our clients to ensure they are well taken care of and served to the highest of our abilities.

Thanks for taking the time to read our page, and we wish you the best for you and your family.