Velocity Loss Mitigation is a full-service loan modification company dedicated to providing homeowners with the mortgage payment relief they deserve. Our team of professional negotiators are fully supported by in-house staff attorneys. We specialize in negotiating lower mortgage payments for our clients.
With recent state and federal laws passed to encourage mortgage lenders to lower interest rates and extend terms, our staff have been able to modify loans with greater ease. Lender cooperation is at an all-time high as major mortgage servicers realize that loan modifications are the solution to the foreclosure crisis.
What is a loan modification?
A loan modification is the result of negotiations with your mortgage lender where the payment is reduced to an affordable amount, usually within 31-38 percent of gross monthly income. This is accomplished through below-market interest rate reductions, principal reductions, loan term extensions or a combination of the three.
What can Velocity do for homeowners?
Whether you are behind on your mortgage payment or are current but struggling to make the payment each month, our experienced staff will work with your lender to:
- Reduce your interest rate
- Forgive past-due amounts
- Convert adjustable rates to fixed
- Lower your monthly payment
- Reduce the principal balance
How lenders modify mortgage loans
In 2005, a $300,000 mortgage was common in many areas of the country. Total income needed to qualify for this loan amount would have been $4,000 per month. The payment would have been $1,995 at a 7% interest rate. Since lenders often allowed mortgage payments to be as much as 50% of your monthly income, the loan was approved. Fast forward to today. The economy and housing crisis have many homeowners struggling to make this level of mortgage payment. It is simply too much when coupled with rising prices for many items in our household budgets.
Lenders know that this mortgage payment should have been only 31% of your income, instead of 50%. By reducing the interest rate to 5% (interest only), the payment is now $1,250 per month for a savings of $745 per month!
At Velocity Loss Mitigation our goal is to help homeowners save and keep their homes. Our knowledgeable staff will help you determine if a loan modification is the best solution for you. We pride ourselves in providing our clients with the highest level of customer service.
