Your Questions About Mortgage Loan Modification

Thomas asks…

I have two mortgages (Citi and Chase), can I apply for both loan modifications?

I have a mortgage with Citi and Chase on my house which I currently live in. Can I apply for a loan modification for both mortgages simultaneously?

John answers:

Sure but you will be turned down. Only your first mortgage can be modified. Why not look into refinancing and rolling both into one

Linda asks…

Does the Loan Modification always affect credit score?

We have never been behind on our mortgage payments and the credit score is good (over 780). Our current loan (5 years fixed interest only) has just expired, and my lender bank has offered us a loan modification (same fixed rate for another 5 years). I have never asked them, they just sent me the LM offer by mail.

Is it true that if I accept this offer it will negatively affect my credit score?

John answers:

You must not be in a haste to take up the offer because there other companies that have more better offers

George asks…

What does a Loan Modification Representative do?

I’m looking for a job in the Real Estate field and I keep coming across Loan Modification Representative listings, but they don’t seem to describe the position. Does anyone know the job description?

John answers:

Loan modifications are the latest real estate scam. Banks hire underwriters who can handle loan modifications and refinancing. Considering it is pretty much a made up title with no details I would stay far away from that one.

Many scam companies write now are popping up offering mortgage holders assistance with negotiating a new or existing bank loan. They take an up front fee of a few thousand dollars then tell the customer sorry we could not help you. The customer should just call the bank themselves. Basically, it is one expensive phone call. They employ people in call centers to collect the fee and talk someone into the trap.

Betty asks…

Hi my husband and I are in the process of applying for a loan modification. Does anyone know the process?

Is the Dodds frank certification the last step in the application for loan modification? If so am I more likely to qualify? What is the trial period? When are payments usually due? Are payments do right a way or do they wait a whole month for the trial period to start?

John answers:

A loan modification process is NOT easy. Your lender will require endless financial documents with hopes of proving that you cannot afford your current mortgage payments. Understand that you will NOT qualify for a modification if your income(s) indicate that you CAN afford current payments. Modifications are for those who simply cannot afford the current mortgage.

Ken asks…

What is the difference between the Making Home Affordable refi and modification?

My mortgage loan qualifies for the Making Home Affordable program, but I don’t know what the difference is between selecting a refinance or a modification. My situation is that I have significantly lost income and at the same time my home value has dropped way below my mortgage balance so I can’t sell and my payments are too high to continue making, am already about to miss a payment this month.

John answers:

Modifications are generally designed for people who are late on their mortgae and/or owe more than the home is worth. Their’s no closing costs and the ‘new’ loan would be with the same bank. Generally less paper work is required.

A refi involves more paperwork and and just about anyone who can afford the closing costs and has the required creid tcan qualify for the refi. A refi very often is with a differnet bank.

Because you’re upside down on the mortgage (meaning you owe more than the house is worth) you may qualify for a mod. If you do, and the terms of the mod are better (that is, you can actually afford the home after the mod) then I’d say jump on the mod. One thing to keep in mind. Sometimes you are required to bring the mortgage current in order to get the mod. If this is something you have to do but don;t have the funds to get current, beg and borrow to get that money from family or friends.

Powered by Yahoo! Answers

This entry was posted in Uncategorized. Bookmark the permalink.