Is it easy to call your lender and receive a loan modification? Are banks required to issue loan mods?
If you are current on your mortgage, but could possibly lose your home to foreclosure, can you call your lender and receive a loan modification? Are banks required to issue loan mods? You may be surprised to hear the alarming answer.
Banks Are Not Require To Give Loan Mods
While banks are looking to give homeowners leniency on their mortgages, they are by no means required to give homeowners a loan modification.
The worse news is that if you are current on your mortgage payments, you are less likely to receive a loan modification than someone who has missed their mortgage payments.
What To Do To Get A Loan Modification?
So if you are paying your mortgage on time, and want to get a loan modification, what are your options?
- You can miss your mortgage payment, and hopefully be eligible to participate in the bank’s loan modification programs.
- You can hire a loan modification specialist to help you obtain a loan modification
If you go the route of trying to miss your mortgage payment, and then hopefully negotiate your loan modification with the bank, you could end up getting knocks on your credit or possibly going into foreclosure proceedings on your home.
As an alternative, if you hire an agent, they can help you negotiate a loan modification without you having to miss your payments. There is a lot of paperwork and complexity involved with a loan modification, and a modification specialist will help you avoid any hiccups and obtain a loan modification while preserving your credit.
