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Answers (10)
- Dave Mason, "DebtFreeDave"
- Contributions:1315
Some will. Here is a link to loan modification information. Hope this helps.
- kimmiek47
- Contributions:2
You don't need to pay a loan modification company. Trust me you can work with your bank directly. You need to explain to them why your are struggling....loss of income, divorce, etc. I worked with my mortgage company and dropped my interest rate down to 4.5% which translates into a $640 per month savings. I never missed a payment, but I explained to them that I had tapped out all my resources and good not continue on the current track. They would rather work with you and keep you in your home than foreclose on you especially if you have been a good paying customer with a proven track record.
- Mary E. Adams, "The Peoples Realtor"
- Contributions:29
I would strongly suggest that you consult legal counsel, and someone who specializes in loan modification first. It would also be wise to speak with your bank and tell them the difficulty you are having or see coming down the road. A loan modificiation company, and one that is reputable could best tell you your options. Best of luck!
- Dave Mason, "DebtFreeDave"
- Contributions:1315
Usually they wont talk to you until you are a payment behind.
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- Bentley Advisors
- Contributions:294
More lenders allow “early workout†loan alterations
Borrowers with loans owned by Fannie Mae no longer have to be behind in payments in order to qualify for a loan modification. Borrowers facing financial difficulty, such as losing a source of income, now can apply for an “early workout†loan alteration. Under Fannie Mae’s program, borrowers who qualify will enter into a trial period of reduced payments, usually for four months. If the reduced payments are made on time each month during the trial period, the modified mortgage terms may become permanent.http://www.latimes.com/business/la-fi-harney21-2008dec21,0,5965944.story
- Charles Rutherford, "charlesrutherford"
- Contributions:1
The essence of any loan mod is "hardship". Lenders do often give more attention to someone who has already missed payments, but depending on lender and circumstances, it may not matter.
It often makes sense to talk to a third party about your situation and get their feeling. If they don't charge an up-front fee (i don't) it may make sense to start mod process.
If it just so happens that a lender isn't motivated to help unless you've missed a payment and what was 'tight' then causes you to miss a payment, you aren't scrambling to start a modification after you've already missed.
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- Clay Burke, "MortgagesMadeEasy"
- Contributions:20
You dont necessarily have to be late but usually have to prove hardship. In other words, why cant you keep making your current payment?
- sunnyview
- Contributions:25115
The squeaky wheel gets the loan mod. Some lender will do them even if you don't miss a payment, others will not. Call you bank twice a week asking for a loan mod. Keep track in a log of everyone you talk to and make sure that the lender understands that you want to keep the house, but will not unless you get help from them in the form of a modification. Keep asking. When you can't carry it anymore threaten to walk away ask ask them when to send the keys. They are likely to listen at that point.
- Craig Baranowski, "Craig Baranowski"
- Contributions:233
You are not alone. There are currently over 6,000 foreclosure starts a day. Over 540,000 foreclosure starts in Q3 2008.
Before I answer your question, I want to state that you should always seek legal counsel and speak with your accountant before making any decisions regarding your mortgage payments or financial situation.
Yes you can modify your mortgage without missing any payments. In some cases lenders will work with you and modify your mortgage before you are in default.
However, the bad news is that many lenders are completely overwhelmed with the large number of homeowners in distress. I explain it to my customs with a triage analogy. Think of a hospital during a massive natural disaster. The hospital is over capacity and cannot handle the volume of patients needing help. The hospital implements a triage program and prioritizes patients by the severity of their illness or injury. As a general rule, the closer you are to foreclosure, the faster you will receive a response from your lender. It is best to speak with your lender before there is a problem.
Be proactive, contact your lender. Work with them on a loan workout package. You can make it happen.
- Dave Mason, "DebtFreeDave"
- Contributions:1315
A few will but most wont talk to you until you are behind. You best bet is to just call your lender.
Loan modification information
Loan modification information
will banks help people with loan modofications even if we have not missed a payment
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