Talk to the lender first. Do not miss payments until it is absolutely your last option. Ultimately, the bank does not want to foreclose on your house because they will lose money. Talk to them about your current situation. Banks will often allow you to defer your payments up to 6 months if your inability to pay is due to job loss, medical issues, and other situations which can be resolved within a short time period. Depending on your credit, current equity, etc., consider refinancing.
You lender may have a refi scenario that you can use. Forcing a loan modification has its drawbacks. Hopefully your attorney gave you the cons with the pros. It ruins your credit for a year or longer depending on the lender. You might fall through the cracks as one hand of the bank doesnt know what the other is doing and on the day your loan mod goes through you might have someone knocking on your door saying they just bought your house.
See if they have an alternative and if not then you have to be persistent every single week to make sure they do what they say (they will be very swamped as time goes on this year and WILL get overwhemled at times) and don’t rest till its “done done” not just “done.” Good Luck
3 Responses to Can lenders do a loan modification if the borrower is not late on their mortgage yet?
Jen M
June 1st, 2010 at 10:15 pm
Talk to the lender first. Do not miss payments until it is absolutely your last option. Ultimately, the bank does not want to foreclose on your house because they will lose money. Talk to them about your current situation. Banks will often allow you to defer your payments up to 6 months if your inability to pay is due to job loss, medical issues, and other situations which can be resolved within a short time period. Depending on your credit, current equity, etc., consider refinancing.
no_mo_names
June 1st, 2010 at 11:12 pm
Yes of course. The new Obama’s plan tries to help homeowners on the verge of missing payments.
Go to your lender’s website and there will be a link to how they can help you. It really depends on the lender but overall, they will try to help you.
Webhoo
June 2nd, 2010 at 12:09 am
You lender may have a refi scenario that you can use. Forcing a loan modification has its drawbacks. Hopefully your attorney gave you the cons with the pros. It ruins your credit for a year or longer depending on the lender. You might fall through the cracks as one hand of the bank doesnt know what the other is doing and on the day your loan mod goes through you might have someone knocking on your door saying they just bought your house.
See if they have an alternative and if not then you have to be persistent every single week to make sure they do what they say (they will be very swamped as time goes on this year and WILL get overwhemled at times) and don’t rest till its “done done” not just “done.” Good Luck