Loan Modifications

Are you living paycheck to paycheck?
Unable to save any money?
Mortgage reset coming?
Mortgage payment unbearable?

According to HUD, the U.S. Department of Housing and Urban Development, a LOAN MODIFICATION is a permanent change in one or more of the terms of a mortgagor's loan, allowing the loan to be reinstated, and results in a payment the mortgagor can afford.

How long will a loan modification take?

A typical modification can be as fast a 2 weeks or as long as 3 months. Each lender has different criteria that need to be met before they will approve a modification.

Do I need to miss payments to qualify?

Missing a payment does not qualify you for a loan modification. Ability to pay the mortgage qualifies you for a loan modification.

I already missed payments can I still qualify for a modification?

The lender will modify your loan at any time, as long as you have difficulty paying your mortgage.

What will the lender modify on my loan?

The following are 3 example areas the lender will examine.
Terms the Lender Will Typically Modify:

  • Interest Rate Reduction: The lender reduces the rate of the loan
  • Principle Reduction: The amount of the loan is reduced
  • Increase Loan Period: A 30 year loan can be lengthened to 40 or 50 year terms

The lender will consider your financial situation and modify the loan accordingly. Two loans with the same rate and principle will be modified differently depending on individual circumstances and financial hardships.