Loan Modifications for Arizona Residents

Primary Residence Arizona Home Loan Modification


Since the Financial crisis of 2008, many Arizona homeowners find that they are having difficulty making their mortgage payments. In response to that crisis, most mortgage lenders are participating in Arizona Home Loan Modification programs.


The Butler Law Office has assisted hundreds of Arizona homeowners in successfully modifying their first mortgages on their primary residences. Most of the modifications follow the formula established by the Federal Government through the Home Affordable Modification Program (HAMP). The HAMP guidelines provide that the target mortgage payment (including principal, interest, taxes, insurance and HOA payments) is 31% of the borrower’s gross monthly income. Gross monthly income is your income before deductions for taxes, insurance, etc. For example, if your gross monthly income is $5,000 per month, the target mortgage payment would be $1,550, including principal, interest, taxes, insurance, and HOA payments. If your mortgage payment (including these items) is higher than $1,550, you would be a candidate for a Arizona Home Loan Modification.


The modification process used to reduce your monthly mortgage payment down to 31% of your gross monthly income is as follows:


  • The interest rate on the loan is reduced to 2% annually for 5 years, increasing to 3% in year 6, 4% in year 7 and capping at 4-5% in subsequent years,
  • The term of the loan is increased, sometimes to 40 years,
  • On some modifications, a principal amount is deferred to the end of the loan, and does not bear interest. It becomes essentially a “balloon payment” due at the end of loan term, and
  • On rare occasions, a principal reduction is offered.


These steps are followed in order until your mortgage payment reaches the 31% target, at which point they stop. We have also been successful in converting variable rate mortgages to fixed rate mortgages.


Arizona Home Loan Modification is even available while in bankruptcy. We have a comprehensive knowledge of the Arizona Home Loan Modification process in and out of bankruptcy and Butler Law Office can assist you no matter what your situation.


For more information on our Arizona Home Loan Modification services, please visit the following pages of our website:



The Butler Law Office has over thirty three years of legal experience and can assist you in determining whether we can obtain a loan modification for you!