What is the procedure for loan modification?
Does anyone know what the procedure is for a loan modification in New York State? Is there a certain amount of income that you have to make to qualify? Just what are the guidelines for a loan modification & are there reasons why someone would be turned down? Also, is it better to try a work out a modification with my current mortgage company or should I seek out another lender?
- 1 decade agoBest Answer
The loan will stay with your current lender, it will just be modified.
The first thing you need to know about a Loan modification or loan mod is there needs to be some sort of hardship or reason why you will be unable to make your payment. Divorce, job loss, adjustable rate coming due, bad or no renters occupying the residence. The are many things that can qualify you, just be prepared to prove it.
The second thing to be aware of DO NOT send any company money up front. These are scammers. We have a pre-qualification process and in most cases due to our long standing relationship with lenders we can pretty much tell you what the offer will be.
The third thing to look out for is anyone telling you to not make a payment to you bank. This will affect your credit poorly. Many loan mod companies will suggest this because it makes THEIR job easier. It is much easier to negotiate when someone is late. However, I am not interested in what is easy, I am interested in what is best for you and your financial future.
Our company can walk you through the process. It is very easy. There is no credit check, minimal paper work and no closing costs. Email me if you would like some more information.
You can do this on your own, but BEWARE you will spend several months negotiating and if you don't get the deal that you are looking for, you are done. There is nothing else you can do. At that point you can not hire a professional because you have exhausted your options. Think of it this way:
You have one chance to fix your loan. Do you want to "try" to do it on your own or do you want someone who has years of experience, connections and legal help to do it for you?
- 1 decade ago
The procedure for a loan modification varies depending on the lender and the investor on your loan. Most companies will put you through a qualification process as if you were refinancing your mortgage to determine if a loan modification will work for your specific situation. The bottom line is what type of hardship you are finding yourself in that is causing you to either be unable to make your payments or has kept you from making them in the past. I found some good information at the website listed below like a sample hardship letter, expenses form and links to some lenders application process for loan modifications. Good luck!Source(s): http://www.FixThisLoan.com
- 6 years ago
If you get approved for a modification the bank will actually TRICK you with lowering your monthly payment but add charges, interest, fees on the back end of the loan and most times they even put a balloon payment at the end. So instead of you owning them say..$300,000 it becomes more like $500,000 so I the end they get a better deal..But all this time you were thinking a modification is the way to go. WRONG. Don't let them scam you. There is a way out of their trap and you can STILL lower your payment. email me at firstname.lastname@example.org I am doing the best I can to save a few from losing their home. Because the mortgages are such a mess that even if you plan on selling there will be a chain of title issue. I can tell you how avoid disaster. And from them putting you into a deeper hole.
- 1 decade ago
I think first of all you have to contact your mortgage lenders in your area they can guide you the whole procedure for loan modification or other way is u have to find out some online mortgage lenders who provide loan modification.
The online mortgage lenders provide best services because there u have just fill up the form and after they will contact you.
I know one online mortgage lender who provide loan modification services from last 10 years. http://www.iloanshop.com/loan_modification_stop_fo... you can try this.
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- elderkinLv 43 years ago
in case you do a change rapidly with the lender, there is not any fee. you'll basically finally end up getting a runaround and extremely slender probabilities of a change. in case you pass thr' a private loan change company, there are expenses in touch - yet those human beings will deal with the changes and negotiations with the lender on your behalf.
- golferwhoworksLv 71 decade ago
your current lender is the only one you look to at this point in time. Just call the loss mitigation department and they will send you the required paper work to fill out to see if you qualify.