What Is the FLEX Modification Program?

Flex Modification Program

The FLEX Modification Program targets both home loans that have not yet been modified or those home loans that were previously modified but borrowers defaulted on them and now are behind on their mortgage. This new program has expanded the eligibility criteria; it allows for higher and lower income applicants to be eligible for a reduction in payment. For borrowers 90 or more days delinquent, the program targets a 20% payment reduction and requires little borrower documentation.

The program offers borrowers principal forbearance (reduction) of up to 30% of the unpaid principal balance with a target loan-to-value of 80%-100% based on your current property value. Other potential benefits include a reduction in interest rate, the conversion of an adjustable rate mortgage into a fixed rate loan and an extension of your loan term to 40 years, all of which reduce your monthly payment.

How We Can Help You

Our attorneys can:

  • Review your situation and help you decide whether a FLEX Modification Program makes sense for you.
  • Review your documents and handle all submission and follow up of the loan.
  • Document & track all communications and correspondence from your lender to verify full compliance with both state and federal regulations
  • Tell you if the terms and features of the offer are regulated under FLEX Modification Program.
  • Tell you the kinds of costs and information you can expect from a lender.

How Does The Flex Program Help?

Just like the HARP program, the Flex program is designed to help people avoid bankruptcy and keep their home. This is typically done by reducing the monthly payments on the mortgage, which can be accomplished in a number of ways, including the following:

  • Cutting Interest Rates - Reducing the interest rate on the mortgage is one of the main ways to cut payments.
  • Extending the Mortgage - Another option is to extend the length of the mortgage to as much as 480 months, which is 40 years. This allows the borrower to pay lower monthly payments over a longer period of time.
  • Forebear Principal - The last option is to take some of the principal amount owed, and put it into what is called forbearance. This portion of the principal does not accrue any interest, and does not require any payments to be made until either the property is sold, or the remainder of the mortgage has been repaid.

Once done, most people will have their mortgage payments cut by up to 20% per month, and kept below 40% of their total monthly income. They will also have a fixed interest rate, which is beneficial for maintaining a predictable payment each month.

Take Action Today

If you are struggling or behind on your mortgage payments, or you fear you will be in a bad financial position soon due to job loss or other circumstances, now is the time to take action. The above only explains the basics of the program, but there are many details that may apply depending on your situation. Fill out the form on this page, or call (866) 775-1552 to speak with an experienced modification specialist and find out if you qualify for FLEX.