Mortgage modification loan question?

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If my income level is just above what my mortgage payment is each month and I am applying for a modification loan can the bank take my house?

  1. Reply
    the kid
    May 16, 2011 at 5:35 am

    As long as you make your payments on time, they can’t take your house. If you cannot make payments and they deny a modification, they can of course foreclose if you then can’t pay.

    If your loan payment encompasses all of your income pretty much, there is no modification that will bring it low enough so you can afford the house. You need to sell.

  2. Reply
    May 16, 2011 at 6:15 am

    They will not modify your loan as your income is too low. Bringing down the interest will not help you if it does not bring the payment under 40% of your income.

    They will not foreclose because they are unable to help with a modification though, they only foreclose if you are not paying the mortgage.

  3. Reply
    May 16, 2011 at 6:40 am

    As long as you are making payments in full, the bank will not take your house. If you stop making payments while you apply for a loan modification, then your home can be foreclosed. If your income is just over your mortgage payment, then it’s unlikely that you’ll qualify for a modification loan. If they let you do a trial, make sure that you are putting the difference in the mortgage amounts in a savings account. If you are denied, you will be required to pay in full for all of the months that you were on a trial period or you’ll face foreclosure. Are you in a position where you can sell the home since you cannot afford it? If not, you may want to look into renting the home or looking for ways to increase your monthly income. Good luck to you.

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