Because Loan Modifications have only recently come into the mainstream as a viable option for homeowners there are many misconceptions about what loan mods are. The information listed below is meant to help homeowners interested in modifying their mortgages. Please feel free to call us about these or any other loan modification questions you have.
Frequently Asked Loan Modification Questions
What is a Loan Modification?
A mortgage loan modification is a changing of loan terms which are agreed upon by both the mortgage holder as well as the borrower. This can include a change in principal, interest rate, prepayment penalties or just about any other previously defined term. A loan modification can be used to stop foreclosure and avoid bankruptcy
Do I have to be behind on payments to qualify for a Loan Modification?
While most loan modifications are done for those who are behind on mortgage payments and can show a substantiated reason for why they cannot catch up, you don’t have to be behind to qualify for a mortgage modification. The best thing to do is contact us today so one of our specialists can look at your case.
Can missed payments be included in a Loan Modification?
Past mortgage payments that went unpaid can be included into a loan modification. A willingness to get caught up in your current mortgage can show the lender how serious you are about making any new mortgage terms a top priority.
What constitutes a “Hardship Situation”?
A “Hardship Situation” can be included to mean the death of a spouse, divorce, injury, illness, loss of employment or extreme financial difficulty. Other situations might occur and are subject to review. Our mortgage modification specialists are available to help determine if you situation warrants this.
Can a Loan Modification help me avoid foreclosure?
Absolutely, in fact you should aggressively consider a mortgage modification before entering the foreclosure process. As lenders and banks continue to help homeowners avoid this costly situation mortgage modifications have become more and more attractive. We can help evaluate your current loan and recommend a modification plan.
Can late payments be included in a Loan Modification?
No. Late fees on overdue payments cannot be included in a mortgage modification plan.
How long does it take to do a Loan Modification?
Because each homeowner’s situation is different the time need to qualify for a loan modification can vary. Typically a modification takes between 2 weeks to 4 months. For a more concrete estimate of turn-around please contact our loan modification department today.
How long do I have to start a Loan Modification?
Generally speaking the sooner you start the easier a loan modification is. As soon as the foreclosure process starts a loan modification is no longer an option. Check out our General Qualifications for a Loan Modification section to see if you are in a situation that warrants a loan modification.
Will the bank require an interior inspection of my home?
An interior inspection of your home could be necessary as a means to determine whether a loan modification is a viable option. This inspection is meant to determine the value of the home.