Re: loan modification
Posted by Todd on June 28, 2008 at 00:44:58:
In Reply to: loan modification
Posted by jorge on June 26, 2008 at 18:24:29:
This process is a change in the terms of a home loan, meaning lowering your interest rate, lengthening the term of your mortgage, or a different loan entirely. If you are unable to refinance your ARM loan, this is a viable solution. Like any decision, be cautious and gain as much knowledge before making your decision.
A loan modification will not affect your credit score as long as you are not late on your mortgage. Hopefully, you will be able to keep your home and have a lower monthly mortgage. Despite the recent struggles in the home lending market, this is a great option to consider.
Unfortunately, there are downfalls to loan modification. Usually, your lender will make you wait 30-45 days before your ARM is up until they can even submit an application. Ordinarily, you must have a high debt to income ratio. You will need records showing your monthly expenses as well as your income. Do keep in mind, just because you submitted an application does not mean you will qualify for a loan modification.
Your lender is not going to make the effort to help you. You must take action and take the necessary steps to improve your situation. Find a good Loan Modification Service to help you. At the very least the lender does not want to lose your money, so they are willing to work with you. Certainly, do not wait until the last minute. You do not have to be delinquent on you house payments.
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