What Exactly is a Loan Modification
August 3, 2008
A mortgage loan modification is something you’re going to hear a lot about in 2009. This program, not fully invented yet, is a process whereby the lender agrees to modify the existing terms of your loan. Many times there is an interest rate reduction, reinstatement and often-missed payments are forgiven.
You can apply for a Mortgage Loan Modification yourself, but it’s grueling work. Even professionals like us have a hard time negotiating with these lenders and an emotional attachment to the property in question would make an already stressful situation that much harder.
Lenders have a Loss Mitigation Department, which handle these requests, but trying to get through to them is nearly impossible, unless you have already missed a payment. Then, the keen interest is triggered and all of a sudden they want to speak to you. Read more