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Can I qualify for a standard 30 years mortgage is I had a Loan Modification?

I had a hardship in 2009 and requested a loan modification from my mortgage lender that went through and closed in May 2010. For 6 months they required me to pay half of the monthly payment that was reported to the credit companies as felt behind the payments. 
Today the value of my house is back to normal and would like to sell it and buy a new house.
Will I be eligible for a standard 30 years mortgage that is available for people with high credit scores? My credit score is on the top, so no issue there, but there is that issue three years back.
Thanks for your kind replies in advance.
  • August 14 2013 - US
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Answers (6)

The answer will lie in the exact details of your modification.  You stated that you made minimum payments in 2009 for six months...did your payments revert to the full payment (per your Deed/Note) and have you been current since?

If that is the case, there is a good chance you will be able to buy.  If, however, you did a full medication of the mortgage/terms; there is likely to be an issue with a new purchase.

Current guidelines about refinancing or purchasing after a modification are a bit murky; however, most lenders state that they would require the borrow to come out of the modification and to make the full, original payments for a minimum of 12 months before they will allow a new refinance.  Purchases are likely to be a bit of a challenge.

Talk with a mortgage professional who can communicate directly with their underwriting department to get specific answer per their lending platform.

Best of luck,

Deborah
NMLS #279125
  • August 14 2013
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I have done several purchases after a Loan Mod or Short Sale. Believe me you're one of hundreds of thousand of people that have gone through your exact situation. Please do not settle for a Rookie LO. Please find yourself a seasoned Loan Officer. In the end it will make a difference.

Best of Luck!
  • August 15 2013
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Conventional financing may be a good route for you.  Feel free to contact me via my profile.

  • August 16 2013
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Dear Deborah, 
The bank offered a modification, I agreed, and ever since we closed it, I am paying the new amount every month properly. The case was 3 years ago. 

So the question is, can I sell my house, pay whatever I am owing right now and get a new mortgage a new house. 

The house is a large equity, since the market came back to normal and I had no other late payment on my credit report that by now is in the excellent level.

Thanks for your kind replies.

Best Regards
  • August 16 2013
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we have mortgage option with someone had modification in the past please call for more detail


Omar Khamisa
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  • August 16 2013
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I am sorry, ladies and gentlemen, I am not a mortgage professional.

My main point is that the only modification was that I got a new, low interest rate that will increase gradually in the future. 

There has not been any payment issues since I have been having this mortgage, only during the 6 months, when the bank insisted that I pay only 50%. I put the other 50% onto an escrow in order to have the asset to pay off if the modification failed, but it didn't. 

Thanks a lot
  • August 16 2013
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