Home Loan Modification Guidelines

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 assetsQuestionable 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.

Posted in: Home Loan Modification Guidelines