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Whether loan modification is a matter of right on part of borrower

Posted on: 03rd Dec, 2008 07:53 pm
Borrowers who are facing foreclosure action against their home loans need loan modification to save their homes at reduced rate of intrerest for a period of 30 years
hi ravindralegal,

as far as i know, loan modification is not a right of borrowers but yes, when the borrowers are at default, this is first option they can go for. however, if you are current on your payments and thinking that you will not be able to pay the dues for the next moth, then the lender will not accept a loan modification. you will have to be delinquent on your payments only then the lender will consider your loan modification.

the borrowers will have to contact the loss mitigation department of the lender and negotiate with them. the loss mitigation department will give the borrowers an alternative repayment plan.

thanks
Posted on: 03rd Dec, 2008 09:54 pm
Hi ravindralegal

I agree with James Hogg here. In efforts to reduce foreclosure, most of the lenders are offering the option of loan modification. If a borrower is unable to make payments, he/she should contact the lender and try out for the option of loan modification. It is the loss mitigation department of the lender which deals with loan modification.

Thanks.
Posted on: 04th Dec, 2008 02:01 am
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