• 수정
• 삭제
• 답변
• 글쓰기

A loan modification is a restructuring of your current mortgage loan to a rate and term that will make it affordable to you and allow you to make your payments and keep your home. These days lenders are open to and accepting loan modifications more and more each day as they have figured out that this crisis will not be gone any time soon. It could be years before we begin to see recovery.

But not everyone qualifies for a modification, and just like with a short sale, a lender does not have to approve a loan modification. The following are things that lenders want to see before they agree to a loan modification:
Proven financial hardship that is the result of a job loss, pay decrease, illness or interest rate increase, including other reasons for hardship. You will have to prove that you cannot make the current or upcoming rate.


You cannot have other properties or investments with substantial equities. Lenders may ask that you liquidate other properties if it is determined that you have a substantial amount of equity in other properties. In other words, if you have plenty of reserves or assets and equity, you may not qualify for a modification.


You do not have to necessarily prove all of your income, but you do have to also be able to show that you can make the new modified payment. Many people have renters, tenants, do side jobs, etc. Just because you can't prove it, does not mean that they will not accept it.

These are just some of the things lenders are looking for when they consider a loan modification. There are also many other factors that lenders are looking for and not all lenders want the same things. Sometimes the same lender who approved one modification may be looking for other things on another borrower because different investors may hold some of their loans. Usually, investors are the ones that approve or deny a loan modification based on each of their guidelines.


Does a loan modification affect your credit?

Not at all, unless you miss one or more payments. If you miss a payment it will reflect negatively on your credit report. A loan modification agreement will not be reported to credit agencies, only late payments will. If you can, try and keep up with your payments.

Can you do a loan modification if you are behind on your payments?

Absolutely. In many cases, the lender will see your sense of urgency and may put you at the front of the line. HOWEVER, do NOT miss payments just because you want to be put in front of the line as doing so can not only damage your credit, but also could result in losing your home.

All of the above should be discussed with a CPA and Attorney prior to making a decision

Question?
fagottsolo@yahoo.com