Frequently Asked Questions about Modification Programs
Q. What is a Modification Program? .
The New Heights Home Loan Modification Program, is designed to help homeowners who are having difficulty making their payments by modifying loans to a level that is affordable for borrowers now and sustainable over the long term.
Q. How does the program work?
To apply, send the servicer the financial documents requested on the enclosed checklist. Once they receive all of your documents, they will work with us to validate your
information and check your eligibility. You can expect to hear back from them within 5 business days. If you qualify for the program, you are notified in writing that your modification has been approved and when you successfully make the first payment you will be formally transferred to the new program. Then, you just need to keep up all of your payments on your loan and you will have a successfully modified loan.
Q. If I qualify, how will my mortgage be modified?
The modification may involve some or all of the following changes to your mortgage:
- Adding past due amounts to the existing balance of your mortgage, as permitted
- Reducing the interest rate on your loan
- Extending the term of your loan
- Delaying your repayment of a portion of the mortgage principal until the end of the loan term
- Partial payment of past due amounts up front in combination with modifying existing mortgage.
Q. Will a foreclosure occur if I participate in the New Heights Home Loan Modification Program?
If your loan has not been previously referred to foreclosure, no foreclosure actions will begin while both parties are actively working to evaluate the situation and trying to come to an agreement. If you stop responding, or stop submitting requested data within one week from contact, foreclosure proceedings may begin and will continue to take place until resolution occurs or the foreclosure has transpired.
If your loan has been previously referred to foreclosure, we will continue the foreclosure process while we evaluate your loan for the New Heights Home Loan Modification Program. However, no foreclosure sale will be conducted and you will not lose your home during the New Heights Home Loan Modification Program evaluation.
- If your loan does not qualify for the New Heights Home Loan Modification Program, or if you fail to comply with the terms, we will send you a letter explaining the reason why you do not qualify for the program. In most cases, you will have 30 days to review the reason and contact us to discuss any concerns you may have. During this 30-day review period, we may continue with the pending foreclosure action, but no foreclosure sale will be conducted and you will not lose your home.
The New Heights Home Loan Modification Program evaluation and the process of foreclosure may proceed at the same time. You may receive foreclosure/eviction notices – delivered by mail or in person – or you may see steps being taken to proceed with a foreclosure sale of your home. While you will not lose your home during the New Heights Home Loan Modification Program evaluation, to protect your rights under applicable foreclosure law, you may need to respond to these foreclosure notices or take other actions. If you have any questions about the foreclosure process, contact the servicer of your loan immediately. They are there to help you. If you do not understand the legal consequences of the foreclosure, you are also encouraged to contact a lawyer or housing counselor for assistance.
Q. If I get a New Heights Home Loan Modification, can my modified loan terms ever revert to the original loan terms?
No. This is one of the advantages of the New Heights Home Loan Modification Program. Once your loan is modified, the new terms stay in place for the remainder of your loan as long as your payments stay current. If your payments go past due then the modification terms may revert back to the original.
Q. Will my credit score be affected by accepting a trial period plan or loan modification?
Staying current on your payments is the best way to maintain your credit score. Credit scores are determined by the credit bureaus and not controlled directly by Aerial Funding, LLC, beyond our servicers commitment to accurately report the status of all our customers. Visit ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm for more information about your credit score.
Q. If my home loan is permanently modified, will you waive any unpaid late charges?
Possibly. It depends on the situation.
Q. Are there additional resources where I can find information about the New Heights Home Loan Modification Program?
Please call the Servicer for your account. See the servicer page for information on our professional servicers. They can help with questions, and look forward to answering them for you!