The Mortgage Brothers Show

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Mortgage Modifications

03-24-2011About MortgagesEddie Knoell

Mortgage modifications are when your lender modifies your current Arizona mortgage by either reducing your principal, lowering your interest rate and extending your loan term or a combination of any of those terms so that you have a monthly mortgage payment that is more affordable for your financial situation.

Mortgage modifications are helping large numbers of upside down Arizona homeowners who owe more on their mortgage than their home is worth by allowing them to keep their homes and avoid foreclosure. Since home values declined substantially in the Phoenix, Arizona and surrounding communities the last few years, Arizona has been hit hard with foreclosures. To help stop foreclosures, lenders have been pressured by the government to find ways to stop foreclosures. The government has instituted a mortgage modification plan called HAMP that qualified borrowers and their lenders may voluntarily participate. Most lenders also have their own modification programs.

To find out more about whether you qualify for the government’s HAMP program or other available Arizona mortgage modification programs, you should speak with your Arizona mortgage broker. Your Arizona mortgage broker can assist you with the loan modification application and help you negotiate favorable terms.

Qualifying for a Modification

If you are in default or about to default on your current Arizona mortgage, your mortgage payments exceed 31% of your monthly gross income and you have stable and steady source of income to pay for your new mortgage modification payments, then you are a good candidate for a mortgage modification. You will need to supply your lender with the following financial information:

  • Last two paycheck stubs form your place of employment

  • 1099 or W-2 forms

  • Last two year’s income tax returns

  • Recent bank statement

  • List of your assets, debts and liabilities

The mortgage modification process may take at least 60-90 days to get a response from your lender. You only get one opportunity to request a mortgage modification so you want to make sure your application does not get rejected because you forgot to attach a financial document that was needed.

By obtaining an Arizona mortgage modification, you get to keep your home and save your credit. That is why more Arizona borrowers are choosing mortgage modifications as their preferred option to avoid foreclosure. To find out more about mortgage modifications and Arizona mortgage rates, please contact us today.

If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.


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Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.