Default loan modification

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Icon Mini Profile tigerfamous





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Post Posted: Tue Jul 14, 2009 12:53 pm    Post subject: Default loan modification
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Currently I have a mortgage with a national mortgage lender and I do not have any late payment yet. The house price is going down. Would it be possible for me to do loan modification? What's the requirements for loan modification?

Please advise.

Thanks.
Icon Mini Profile JChen





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Post Posted: Tue Jul 14, 2009 2:42 pm    Post subject:
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It really varies across the board. There are no cut and dry requirements for loan modification and the "rules" keep changing, so keep your eye out for updates and continually check the news. The most widely applicable set of requirements can be cited from President Obama’s federal loan modification plan:

1. Your loan was originated prior to January 1, 2009
2. Loan amount is less than $729,750.00
3. You live in the home as your primary residence
4. Your current mortgage payment equals more than 31% of your gross monthly income (for example, your gross monthly income is $2,000, and your current mortgage payment is higher than $625/month)

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Icon Mini Profile adonis
adonis




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Post Posted: Tue Jul 14, 2009 7:25 pm    Post subject:
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Hi tigerfamous,

Lenders can offer you a loan modification though your loan is not at default. If you are facing a financial crisis, write a hardship letter to your lender and request for a mortgage modification. If the lender is convinced about your financial crisis, he will offer you a modification. The modification can get combined with a forbearance plan wherein the lender can suspend your payments for few months and then depending upon your situation give you a loan modification.

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Icon Mini Profile tigerfamous





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Post Posted: Tue Jul 14, 2009 8:02 pm    Post subject:
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Hi JChen,

Thank you very much for the information. It is really helpful. The other question is how to do it. Do I have to go to the current lender? or can I go to any other lenders?

Thanks a lot.
Icon Mini Profile tigerfamous





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Post Posted: Tue Jul 14, 2009 8:09 pm    Post subject:
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Hi adonis,

Thank you for the detail and the link.

If the mortgage is not current, the credit score might be impacted. Does the loan modification lower the credit score? Will the forbearance plan impact the credit score?

Thanks.
Icon Mini Profile Realgeni





Joined: 13 Apr 2009

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Post Posted: Tue Jul 14, 2009 10:39 pm    Post subject:
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tigerfamous

Loan modification shouldnot affect your credit score

To get loan modification you want to contact yoru current lender first and also see if you can show some financial hardship for them to consider you loan modification

Good luck
Icon Mini Profile aksh12th





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Post Posted: Wed Jul 15, 2009 6:54 am    Post subject:
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Hi,
You can do loan modification ,But its rule are different for places and as per orgnisation . Also its depends upon your loan amount.
For U.S. now very attractive loan modification are in market so try to investigate that.

So contact your current lender first then he will give good advoice for changing loan modification.

Thanks
Aksh
Icon Mini Profile tigerfamous





Joined: 11 Jul 2009

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Post Posted: Wed Jul 15, 2009 11:47 am    Post subject:
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Thank you all for different thoughts. It's really good.
Icon Mini Profile JChen





Joined: 14 Jul 2009

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Location: San Diego, CA 92101
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Post Posted: Wed Jul 15, 2009 1:04 pm    Post subject:
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Hi Tiger,

In regards to your followup question about how to do a loan modification, you can contact your lender or try a company that specializes in overseeing loan modifications. Pull together a hardship letter to present to your lender.

And information on how to write a hardship letter here:

http://www.mortgagefit.com/problems/hardship-letter.html

Hope that helps! Let me know if you have any more questions and good luck!

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Joyce Chen
www.twitter.com/acfmod

Anderson Chase Financial
625 Broadway Suite 611
San Diego, CA 92101
Phone: 888-826-0615

www.AndersonChaseFinancial.com
Icon Mini Profile tigerfamous





Joined: 11 Jul 2009

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Post Posted: Thu Jul 16, 2009 1:17 pm    Post subject:
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Hi JChen,

Thank you for your clear instruction on how to do loan modification. It is now clear to me.

Thanks for the time.
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