When contemplating on doing a loan modification you may want to take into consideration these guidelines before going through the hassle. If you feel that these guidelines fit your current financial situation, then I say move forward with the loan modification. These guidelines are here to assist you in making a decision on getting yourself back on track and keeping your home.
Loan Modifications that won’t work
· There has been a loan modification or rate freeze on the property in the last 12 months
· If the lender did a rate freeze for you without you asking in the past 12 months.
· You are already in a low-fixed interest rate with no hardship and aren’t behind on your mortgage.
· If your loan is an adjustable rate mortgage that isn’t set to adjust anytime soon. The loan has to be within 2 months of adjusting or has already adjusted.
· The loan is an option ARM that isn’t late or isn’t in foreclosure.
· You are claiming a hardship but not showing a loss of assets
Questionable loan modification.
· Your current loan is a low-interest only payment. If the lender does a modification and they fix the rate it may take the payment up because of it being interest plus principle payment.
· Any fixed rate loan that is at a 7.5% or lower that isn’t late lenders normally won’t even entertain doing a loan modification.
These are loan types that will work better for you.
· If the loan is a 2/28 ARM or 3/27 ARM that is within 2 months of adjusting.
· Any loan that is delinquent-unless you have been modified in the past 12 months.
· Any high-interest rate loan with a subprime lender, whether fixed or adjustable.
· Any adjustable high interest rate loan that is within 2 months of adjusting.
I hope that this will be of some help to you in making a decision. This is just what I have been experiencing while doing loan modifications. I found this information very informative, and wanted to share my knowledge with you.
If you are feeling the pinch of a delinquent home loan and stressed bout losing your home to foreclosure, we are here to assist you. We offer a money back guarantee if we can't get your delinquent home loan modified.
