National Auto-Modification Inc.
What is a loan modification and Who Qualifies For One?
Whether you call it a loan modification, restructuring, or workout plan, it’s when a borrower — who is facing great financial hardship and is having difficulty making their loan payments — works with their lender to change the terms of their automotive loan. The workout plan could result in temporary or permanent changes to the automotive loan term and monthly payment of the loan. The plan’s goal is to help the borrower reduce their monthly automotive payments to 31% of their gross income. Under Obama’s plan, loan modifications will be standardized, with uniform loan modification guidelines.
Who is eligible for a loan modification?
According to the Department of Treasury: “Anyone with high combined debt compared to income or who is “underwater” may be eligible for a loan modification. This initiative will also include borrowers who show other indications of being at risk of default.
As reported in the LA Times, “This program applies to borrowers who are unable to make — or are struggling to make — mortgage payments that exceed 38% of their monthly income. If the lender agrees to lower the interest rate or reduce the principal amount to bring the payment to 38% of the borrower’s income, the government will pay half of the additional cost to the lender to reduce the payment to 31% of the borrower’s income.”
Why would lenders modify your loan?
Banks would rather have you stay in your car — even if they’re not making the full amount they signed up for — rather than have the car repossessed. They stand to lose more if you are repossessed than if your loan is modified.
• All or a portion of the outstanding principal balance, past due car payments, late fees, and lender costs may be rolled into the loan modification. This results in no lost revenue to the lender. Simply put, the amortization of the loan may be increased resulting in a lower monthly payment for the automobile owner at no loss to the Bank.
• Modified vehicle loans use many repayment options to create a win win situation. In most cases, the lender will lower the interest rate and modify the variable term into a fixed term. The lower monthly payments help ensure repayment by the borrower and create more interest earned by the lender over the life of the loan.
-
Are you behind in your car payments?
-
Are you facing repossession?
-
Have you had a hardship?
-
Need your car payment lowered?
-
Is your interest rate too high?
HAVE YOU BEEN:
Over charged by Car dealers?
Over charged by Lenders, and or Banks?
Outright lied to by your car Dealer?
Over charged for an extended warranty that Didn't Cover what you needed it to?
If you answered YES to any of these questions, WE CAN HELP!
Our Services Include But Are Not Limited To:
Attempting to lower your payments, and Interest rates to help you avoid repossessions, and excessive late fees.
We offer the most inexpensive warranties in the country including commercial applications,
We will help you to fix your credit or to build or re-build your credit.
We hold seminars and webinars to teach you how to get a better deal from the dealer the next time you buy a car.
We offer a personal buyer service, where we will arrange a purchase for you or even GO TO THE DEALER WITH YOU.
We also offer to help people secure vehicle interest/ hold insurance safety classses to save on your interest.
WE CAN AND WE WILL HELP!
(877) 932-3332
HABLAMOS ESPANOL
