Loan Modification Process

Is the loan modification process an easy one? No, it isn’t. It will require you to make countless phone calls and a whole lot of number crunching. You should expect the entire process to take anywhere from 60-90 days to complete.

A loan modification is the most preferable solution to financial hardship for homeowners looking for mortgage relief, and as such has been the focus of a large amount of media attention in lieu of the onset of the financial crisis.

It will normally begin with several phone calls to the lender or servicer in which the phone call will be answered by an automated system which will provide a list of menu options, and not to mention prolonged hold times for up to 60 minutes depending on call volume and the hold music will sometimes put you to sleep and if you are lucky after waiting 30, 40 minutes your call wont drop and you may have to start all over again. Some home owners describe this as modern day torture.

Typically, it can take between 30 to 90 days for the process to be complete. Don’t lose heart, but be aware that it can take months before you hear back from your banker, credit union, or other lender. You should ask when your paperwork is likely to be competed and mark that date on your calendar. This is useful as a reminder if you start to panic when you have no heard from your lender as well as knowing when you should call to check on your process. Despite the time it takes, you will not be charged late fees; however, this will not stop the lender from calling or sending you delinquent notices.

Would a 2% interest rate on your home loan help you to be able to afford your mortgage? When a borrower qualifies for Obama’s program, one of the standard methods of reaching an affordable monthly payment is to reduce the interest rate to as low as 2%, as well as possibly extending the loan term out to 40 years. In some cases where the home has lost a significant amount of value, some of the principal balance may be deferred or even forgiven.

Make your own report. Part of every home equity loan modification is a financial worksheet, which will be the primary basis for reservation. Nearly all loaners have their own forms; however it will not harm to make your own as well. If your lender beleaguers on using their worksheet, at least you will have all the information ready.

Do your own financial statements. Part of every home loan modification is a financial worksheet, which will be your main basis for qualification. Most lenders have their own forms, but it wont hurt to make your own as well. If your lender insists on using their worksheet, at least youll have all the information ready.

In any case, make sure that you give as precise and verifiable information to your loan modification attorney so loan modification servicers discuss with the lenders to get the best possible rate for the loan.