Home Loan Modifications
Posted on | January 27, 2010 | No Comments
I have received several calls over the past week in regard to home loan modifications for people that have not been able to refinance their homes due to the loan on the house being more than its current value or the current financial position has changed and they can not longer qualify for a refinance. Every one I have talked to this past week bought their home using one of the older programs; stated income, interest only, no doc, etc. and are all self-employed who have lost about half their income over the last two years and are just now getting back on their feet.
The problem is that lenders don’t lend on what you plan to do but on what you did over the past two years. That means the financials you are turning over to them are most likely the worst you have had in the decade thus a refinance is not an option for you. What you can do is request a home loan modification through the Loss Mitigation Department of the company who is servicing the loan. This is not a slam dunk either as you have to show hardship; loss of job, income, etc. and you do have to qualify for this as well so be prepared to show financials, bank statements, etc. just like you do when getting a loan.
Though this can be time consuming, it is worth the effort of you are in a position where you are really struggling to pay your mortgage. You can also approach the company who is servicing your second and do the same thing. These sometimes go through Loss Mitigation and sometimes not depending on how large the institution is. The key is to stick with it and not let anyone bully you. You are in a temporary situation and that will change in time.
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