Your Questions About Home Loan Modification

David asks…

Is it possible to refinance after you get a loan modification?

I recently got a loan modification and it is going great. However, I am interested in refinancing to include my home equity loan. Is that possible or can you not refinance once you have gotten a loan modification.

John answers:

It is most likely up to your primary lien holder or mortgage holder. If you are looking to consolidate your home equity loan into one payment you will need to apply for refinance. Depending on how long ago your loan was modified and what kind of credit you have, you may be able to refinance the property into one consolidated payment. You can contact your lender directly with borrower authorization and have someone walk you through your current options at your bank.

Richard asks…

Can I refinance my home loan since I have been laid off?

I was laid off from my job a few months ago, and my current home loan is current with no late payments. Things are starting to get tight on our finances. Are there programs or companies that will provide refinancing when someone has been laid off?

John answers:

Refinancing? No.

However, a “loan modification” may be possible.

Donna asks…

My fiance wants to do a loan modification. He isn’t currently behind. Should he go directly to countrywide?

The loan payment are too high right now. We don’t have enough equity in the home to refinance. So Loan Modification is our only choice.

John answers:

I would, this eliminates any other extra fees. I actually did this, I had one with Chase and 2nd with Countrywide, originally I had a mortgage broker and this time after being taken advantage of with no fixed mortgage, I did it myself directly with Chase and Countrywide. You’d be surprised but don’t let them get you either. I had to keep stressing FIXED NO ADJUSTABLE I saved myself 1% on both by being assertive and not letting them walk all over you.

Also, after I paid closing costs, Countrywide now offers no closing costs on refinance and also no cash required, no cash is different than closing costs because this means they wrap up these fees with the loan. Also if it’s been X time since appraisal, they should be able to use this and not charge for new appraisal, just keep picking away at any expenses they try to give you and you’d be surprised at the difference of what you started to what you finalized on. Why didn’t they just give the good one to begin with? Because most of us don’t question, always question, this is why we have all the problems, because we trust these people, do not trust.

Mark asks…

Has Freddie Mac started to introduce any loan modification programs for banks?

I have been unemployed for the last 60 days and my Credit Union has been telling me that Freddie Mac keeps delaying these “Webinars” that need to be held before any loan modifications can take place. The C.U. has told me for the last three weeks that they have not been told what the qualifications are in order to get a loan modification. Is this true? Do I have to wait for my credit union to have a “WEBINAR” with Freddie Mac before I can get a loan modification?

John answers:

Freddie Mac is part of the loan modification program that President Obama recently introduced (along with Freddie’s larger counterpart Fannie Mae). Keep checking with your bank or mortgage company for information on when they can begin helping you, but it should be soon. There are two parts to the plan introduced:

1) Loan modification – you loan will be modified so you can afford the payments and your payment is a maximum percentage of your income. You’ll need to prove a bunch if information, such as income, assets, hardship, etc.

2) Refinance Plus – You’ll be allowed to refinance up to 105% of your home’s value (or equity).

Both are availalbe as soon as your bank allows, so get in touch with a mortgage company to find out more. I’ve also included a link below to the governments main site about the program.

Hope this info help!

Michael asks…

After being far behind on my mortgage, how long will it take to rebuild my damaged credit?

After losing my job, i was able to get a modified loan, where they now tacked on the thousands that i owed to the end of my 20 year loan. This has obviously damaged my credit being far behind on my payments. How long now that im able to go back to good payments will it take to rebuild my credit. And what will happen when i want to sell this home from the loan modification.

John answers:

Well the good news is that you did not lose your home. The bad news is your credit will be bad for a long while. How long depends on weather you “charged off” any of your debt (bankruptcy etc.) If that is true it might take as long as 7 years or more (for GOOD credit) If you still have credit cards you may be able to do it in less time. When you sell your home that debt will be paid but getting another loan for another house may be a bit hard. So you may be “stuck” there for the duration of this process. Hope I helped……R

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