However, there are a lot of these going on right now and most of the homeowners, in my experience, have missed payments or proved that there is no way they can make the current payment amount. So if their situation is one where they can make the mortgage payments by eliminating other expenses, the lender may not consider it crucial. If they can show that they have cut back on other expenses and are still in a negative cash flow, then they may get a favorable response.
Talk to a mortgage broker (perhaps one will answer here) to get advice. You could contact Tony Veliz through my website at this link.
Here is some fannie mae info about it: http://www.fanniemae.com/newsreleases/2009/4631.jhtml;jsessi
Here you can find out if the mortgage is owned by fannie mae: http://loanlookup.fanniemae.com/loanlookup/
You will need to show your hardship, here is a sample form: http://www.floridadreamloans.com/xSites/Mortgage/CharlesRute
There are loan modification companies you can hire, but they tend to run around $1,500 to $3,000 up front. You can apply for loan modifications yourself by just calling the bank, asking them to apply and submit the necessary documentation along with a financial snapshot of expenses. You have to be able to afford your payments, therefore not be in too much negative cash flow. You are also able to submit a hardship letter explaining your situation, whether it is temporary or permanent and what it is you are looking for... reduction of interest rate, reduction of payment, removal of missed payments if any...
I am a short sale expert if your relatives are unable to get loan modification and would be happy to assist should they need to sell (although I hope they are able to keep their home).
This class was developed within our company due to the number of owners that were being talked into selling their homes, by hungry agents wanting another check, when they likely could have kept their home if only they knew there was a way. The benefit for us all is helping all homeowners maintain their value by saving one home at a time.
Since every situation is very unique depending on your level of distress even down to the specific servicer, it is my recommendation that you take some time to attend our free distressed homeowner class. Another note, while we can give you excellent training on this matter, NO ONE can guarantee a loan modification except your lender/servicer. Contact me or my office and we will line you up with a class.
I hope this help in some way,
CENTURY 21 North Homes Realty, Inc.
She's also written some topics on that over at Rain City, and I'm fairly confident she'd advise you to see either a licensed mortgage professional or an attorney.
There are seven types of loan modifications. Your relatives might want to know all their options and then choose the option that is best suited for their situation. Here is a link to a free 45 minute video for unbiased options for them.
The address for the loan modification specialists that offer loan mods in all 50 states primary or investment properties who get the loan mods done quickly and to the benefit of the client are