ModifyUtah Explains the Need for Home Loan Modification Services

Randy Chipman, ModifyUtah vice president of finance, answered a few questions about ModifyUtah and overcoming the stigma they have as a loan modification provider.

 

 

According to a recent report by RealtyTrac, the number of Utah households caught up in the foreclosure crisis rose more than 13 percent from summer to fall -- much higher than a nationwide increase of 5 percent.

 

We have been in a housing crisis for the past few years, but Utah was behind the curve compared to the rest of the country. Many of the adjustable rate and subprime loans in Utah are just now resetting, leaving homeowners with skyrocketing interest rates and payments they can’t afford. We recognized the need for a local company to help local homeowners achieve a home loan modification – rather than using an out-of-state company that is not aware of Utah laws and regulations.

 

 

RealtyTrac lists 17,255 Utah homes in some stage of the foreclosure process, and Utah has the nation’s sixth-highest rate of foreclosure-related filings. One in every 97 households in the state has received some type of foreclosure-related filing, compared to the national rate of one in every 136 households. 

 

 

There are three options for homeowners, assuming they can’t afford to continue to pay their current mortgage payment. They can go ahead and foreclose which of course ruins their credit in the immediate future and keeps them from purchasing another home. They can sell the house for less than it is worth with approval from the bank – a short sale. Or they can try to get a loan modification.

 

 

Absolutely, homeowners can get a loan modification themselves if they are willing to put in the time. It is like doing your own taxes. Anyone can do their own taxes, but I pay a professional tax preparer to get it done right so I don’t have to spend the time. 

 

Banks are not interested in working with homeowners and their processes are not conducive to this kind of personal interaction. Homeowners end up spending hours upon hours on the phone with the bank, and then go back and forth about paperwork for months before achieving any results. Many of our clients have spent the last three to six months trying to get their own loan modification. When they get fed up, they look for help.

 

 

Our biggest strength is experience – we’ve done hundreds of successful loan modifications. We provide a professional team of lawyers, negotiators, and brokers who negotiate mortgage loan modification in a quick, timely manner. We also evaluate the loan for free from the start, so we know if the homeowner is a good candidate for a loan modification. We have established relationships with most of the major banks and mortgage servicers in the United States, so we have the tools to get the loan modification quickly and easily.

 

 

It is unfortunate that there are dishonest people out there trying to capitalize on the misfortune of others. We opened our doors here locally so people could come in, sit down with us, and understand we are a brick and mortar company helping Utah homeowners.

 

We’ve learned a lot about overcoming a negative industry reputation, so we have done everything by the book to prove to homeowners that we’re different. We are licensed with the Utah Department of Real Estate, and most importantly, we offer a money-back guarantee. If we can’t modify the loan, the homeowner can get their money back.

 

Our clients have lowered their mortgage payments anywhere from $300 to $1,500 a month. The cost of a home loan modification is less than a refinance, and the modification will pay for itself through reduced mortgage payments in an average of six months. Over the life of a loan, homeowners can save up to $150,000.