WHAT DO YOU KNOW ABOUT A MORTGAGE LOAN MODIFICATION?

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I AM APPLYING FOR A LOAN MOD. WHAT WILL THIS DO TO MY CREDIT? HAVE YOU DONE ONE BEFORE, HOW MUCH WAS YOUR PAYMENT LOWERED?

4 Comments
  1. Reply
    Landlord
    April 30, 2011 at 1:52 pm

    It will not effect your credit.

    I have done several for family, lowing payments by an average of 50%. It depends on what interest rate you are paying now. I have stupid relatives who got involved with ARMS, completely embarrassing.

    I lowered my own by asking to be streamlined, which did hit my credit a tiny bit. I have not modified any of my own loans and am unlikely to ever do so.

  2. Reply
    acermill
    April 30, 2011 at 2:36 pm

    The amount by which your payment might be lowered is fully dependent on your current financial status, of which the lender will require documentation. As well, if your financial status indicates that you cannot handle the amount of payment the lender requires, they may well deny your application. (Example, you can only afford $ 500 monthly, and your original payment was $ 1200) The lender is not required to accept such a huge change, and may well decline your application and choose foreclosure as a better option, in their interests.

    The answer to your question is NOT simple. The best I can indicate is that you simply need to work with your lender as best as you can, and go from there.

  3. Reply
    Zarg222
    April 30, 2011 at 2:47 pm

    your chances of getting approved are very small

  4. Reply
    Donna Keller
    April 30, 2011 at 3:42 pm

    it involves a change in the terms of the loan usually the approved credit line or your monthly payments. your monthly payments may be lowered to the amount that you can only afford because of your hardship. but these new terms that you will state in your hardship letter will still be processed for approval by the loan officers of your bank. some get approved. some don;t/ good luck.

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