Loan modifications are tricky, if your wondering about your options please make sure you work with someone that has experience and success in completing them. Anyone that tells you that you have to pay up-front fees is most likely taking your money. Your lender will give you options, they may be just what your hoping for. This is a very personalized process. Your lender will look at your information on an individual basis.
Kris and I are trained to do loan modifications, and have a great deal of experience in negotiations. It’s kind of funny, we have been doing loan modifications along side our Short Sales over the past several years. Everyone now seems to know what a “Loan Modification” is.
We have several loan mods in the works right now. I just finished up a call with Countywide regarding a client that is upside down nearly 40% and has an FHA Loan. The fact that he has the FHA loan is definitely in his favor, it opens up more opportunities for him.
The negotiator did tell us that there are several investors that have many different programs within Countrywide. This particular client has been struggling to stay current on his payments, and has not been late yet. Good news for his credit rating, but unfortunately many of these programs are not made available to you unless you’re seriously delinquent.
This client has a very good chance of getting a loan modification that will help him with the monthly payments. As for cutting the principal balance….? Probably not. The Banks would rather accept a Short Sale offer with an outside buyer.
I know, it does not make any sense to me either!
