Refinancing Home Mortgage
In: Mortgage Loan
27 May 2010Why do loan modification companies want you to start foreclosure
before they want to help you? Why not help before hardship occurs? What is the best thing to do before an adjustable rate resets?
This is about mortgage information questions.
3 Responses to Loan Modification on adjustable rate mortgage?
Professional Peon
May 27th, 2010 at 1:07 am
I guess because if they did it before hand then everyone would be looking to modify, just because they could.
Kamal
May 27th, 2010 at 1:15 am
With real estate prices spiraling down, a lot of people would like to just give their properties back, or get a better deal. Well, the banks are not going to loose any money, unless you prove hardship. Plus, they are not going to let you off the hook that easy, and ruining your credit seems to be a very sweet pay back.
Dan P
May 27th, 2010 at 1:34 am
Because Loan Modification should really only be your last option. It is a temporary fix (3 years is the average)and disallows you from refinancing until the term is over… in which case the loan would recast back into the former rate and term.
Right now, only about 4% of loan modifications are being done nationwide.
The best thing to do if you are in good standing on your mortgage, have decent credit, and stable income is to look into what options you have to refinance (or you can just let it adjust…). With interest rates so low right now because of what’s going on in the ecnomy, nows the best time to get into a long-term fixed program.