Loan Modification Frequently Asked Questions

This website is a resource for homeonwers looking to save their home and achieve lower monthly payments on their home mortgage so they can afford to stay in their home and avoid foreclosure. Below are some of the most commonly asked loan modification related questions.

Can late fees be waived in a Loan Modification?

Yes, in the majority of cases the banks will waive the late fees and work with you.

Do I qualify for a Loan Modification?

If you are having trouble making monthly payments on your exisiting mortagage then the likely answer is yes, you are qualified...that is if you can make monthly payments after your loan is modified. To start the loan modification process you need to show proof of income and write a hardship letter explaining why you are not able to make your monthly payments.

What would qualify as a hardship?

Everyone's situation is different but generally some of the hardships considered include the death of a family member, illness to you or a famliy member, military service, loss of employment, reduction in work hours, increase in interest rates, increase in property taxes, depreciation of your home value, and disability are some of the reasons that can qualify you for a home loan modification.

Why would my lender want to work with me on a loan modification?

The answer is simple. Lenders would rather keep you in your home rather than have you foreclose on your home. Why? Simply because the foreclosure process costs them more than it would if they kept you in your home and making it easier for you to make monthly payments. According to Freddie Mac, the cost to foreclose on your home averages at $60,000, therefore it would benefit the lenders more to negotiate with you. Foreclosure is the absolute worst scenario for you and the lender.

How long does it take to get a loan modification?

Once your paperwork has been received the typical loan modification process can take from a couple of weeks to 60 days.

I am in the process of foreclosure. Do I still have time?

If you have not reached a foreclosure sale then you still have time. You need to act fast if you have reached a foreclosure date. If you are facing immenent foreclosure please contact us to discuss your options.

I tried to speak with my lender but they are unwilling to work with me

We have seen situations like this before. We can help. Contact us today so we can negotiate on your behalf.

So, what will I get after the loan modification process?

A successful loan modification can result in:

Home monthly payments reduced
Reduction of the principal balance on your home mortgage
Your late and missed payments can be forgiven
Reduction in your interest rate
Stay in your home

Does a Loan Modification affect my credit score and credit report?

Visit our Loan Modification credit score page to find out the impact a loan modification can have on your credit score.

Do I qualify?

City Links: Mortgage Modification help