Loan Modification Help Center

FDIC loan modification is a federal program established in January of this year (2009) for all mortgages. It is said to be a way to help individuals recover from the bad economy and help them in reducing their mortgage payment by loan modification.

How it Works

The first step in achieving a Federal loan modification is to put a cap on your current interest rate. This is based on your expenses and your steady income. The term “cap” means that it will be the highest rate you pay during the term of your mortgage. The first five years of your loan will receive a reduced interest rate. After these 5 years you will notice a slow increase of about 1% of your interest rate every year, until your cap is met.

FDIC loan modification will also help to extend your mortgage term in order to lower your payments and payout your loan on an extended time period. The normal extension period is 10 years. This can reduce ones mortgage greatly. Keep in mind, when your loan matures you will be faced with a balloon payment that is quite robust

FDIC Facts

The FDIC will only allow 30-year fixed loan rates. A loan modification attorney can help to peruse through all of the paperwork to assure you are making the correct judgment. The federal loan will also look at the family’s future income to make sure they will receive the payment in full when the mortgage matures. In order to qualify for a FDIC loan modification, you must have the permission of both the borrower and the lender. You must submit to the lender two pay stubs of your current income and tax transcripts. The most important thing to remember is that you must make all these modification payments on time, no matter what.

You must contact your lender to see if they participate in this new loan modification program and if they can provide the loan modification help you need. You must use your current lender. If your foreclosure has already begun, you may still contact your lender regarding a loan modification, but you must do this in a timely manner, remember time is ticking by on your foreclosure. If you have recently filed for a state of bankruptcy, you will not be able to participate in a loan modification program. If you have a first and second loan, you are eligible for a FDIC loan modification; this is another reason to have a professional go over all the rules and regulations of the loan modification process. Going through the paperwork to assure you are eligible when having a first and second loan is exceedingly recommended.

The FDIC has created this substantial program to help individuals threatened by foreclosure. It is quite effective if you contact a loan modification lawyer and receive the information that will be required during the loan modification process. California loan modifications happen every day and homes are saved quite frequently. Loan modification advice is the best step you can take in finding out if FDIC loan modification is for you.