Depending on what kind of mortgage you have, the forbearance currently in place is coming to an end. Be it for FHA loans, Fannie/Freddie Mac, VA, USDA the end is now 7/31/21. One solution (of 9 options) is to secure a Loan Modification.
In simplified terms, a “Loan Modification” is when a mortgage lender agrees to avoid selling a property. So the borrower(s) keep the roof over their head. It is an alternative to foreclosure, a lengthy and an expensive means to an end for both the lender and the borrower.
The Loan Modification process is not a simple one, and if past experience is anything to go by, tales of wayward experiences are sure to make their way into discussions. Don’t let those stories be your guidepost.
Freddie Mac, Fannie Mae and FHA are all getting ready for the wave of Loan Modifications sure to appear at mortgage lenders and companies that service (take and post payments amongst other duties) home loans. Their goal is to make the Loan Modification decisions in a shorter time frame.
Even with these preparations and the prospective automated applications, the paperwork involved in Loan Modifications is sure to be enormous. Completing the required forms, submitting them for review, then tasking someone to examine the documents equals a considerable timeline for approval.
What Type of Property Is Eligible for Loan Modification?
Primary residences (your home) that underwent Forbearance are suitable for Loan Modification.
As a Short Sale and Foreclosure Resource (SFR) professional, I can answer questions related to qualifications and lender requirements.
Who Qualifies for a Loan Modification?
A borrower can qualify for this assistance if they used a forbearance program, either for the full or partial mortgage payment. are suffering financial hardship.
Before electing the Loan Modification solution, contact your lender to discuss your options. Many banks and mortgage servicing companies have programs in place to assist customers who fall on difficult financial times. They would rather provide relief than take a loss in a loan default.
When Does the Loan Modification Process Begin?
The best time to initiate Loan Modification proceedings is as soon as you face delinquency or receive notice of a transfer. Contact your lender to inform them of your hardship or job change and follow their advice.
After discussing options with your lender, and you feel a Loan Modification is the best solution, contact me to help assemble the application packet.
I provide a range of services, including Loan Modifications and their alternatives.
Need More Information?
Loan Modifications are still complicated transactions, despite streamlining efforts. Text/call 760 622 5087 or contact me to map out the best strategy for your situation.