What if you are not in foreclosure...or late...can you do a loan modification???

Asked by Linda, Brentwood, CA Sat Mar 14, 2009

I feel like you get penalized for making payments and meeting your obligation...

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Victoria Qui…, Agent, Denver, CO
Sat Mar 14, 2009
I recommend to my clients to seek a loan modification if they can show that they can still afford a lower payment (this isn't a good option for those who cannot afford a lower payment - aka. loss of job and no income). As mentioned before it is never too late to ask for assistance... and I would also add that it is never too early. I know a gentleman who successfully worked out a loan mod, the bank dropped $30K off the principal of his loan and he had not been behind (he was able to show a large decrease in income).

The desired result of a loan modification is to provide the home owner with a payment they can afford. If you are currently meeting your obligation, the lender will want to know why you will no longer be able to afford your current payment, but verify that a lower payment will still be feasible for you. The gentleman I referred to was able to work directly with his lender. You can pay a third party to work out a loan mod, or you can contact them yourself. Lenders are being very responsive right now, and a lot of them receive an incentive for loan mods completed. Best of wishes!

Here is a link for Loan Modification Frequently Asked Questions:
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Dallas Texas, Agent, Dallas, TN
Sat Mar 14, 2009
Contact local mortgage broker determine if you can refinance OR speak direct with lender. You might be able qualify undetermined unless those parties review your status.

~ National Featured Realtor and Consultant, Lecturer regarding Credit Repair, Mortgage Loan Officer
Web Reference:  http://www.lynn911.com
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Gene Yakubov…, Agent, Burlingame, CA
Sat Mar 14, 2009
A loan modification permanently changes one or more of the terms of a homeowner’s mortgage loan allowing this loan to be reinstated with lower affordable and sustainable mortgage payments for the homeowner. This is typically achieved by a combination of interest rate and principal balance reduction. Related late fees and other service fees you might have already incurred are also typically waived.

It is never late , even if you have Trustees Sale date set, to approach the Lender and request work out.

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