| How Easy is It to Get a Loan Modification These Days? |
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Written by admin, July 17th, 2011
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How Easy is It to Get a Loan Modification These Days?
In the past, getting a loan modification was fairly simple. The banks were not overwhelmed with requests and when someone did need help, they had plenty of time to try and figure out a solution. Today things are much different; mortgage companies and banks have thousands of foreclosures to deal with and they all seem to be losing money and going out of business, because of the foreclosure crisis. What used to be a simple process is now one of the hardest ways to stop foreclosure.
When a lender agrees to do a modification, they are taking a big risk. They are offering you a chance to stop the foreclosure and get a fresh start, after they’ve spent money trying to foreclose on you. If you stop making your payments after the loan mod, they will have to start the process from the beginning and it will cost them even more money the second time around. This is why lenders rarely offer a mortgage modification as their first solution. In most cases, they do what’s called a workout plan. This gives you the opportunity to make several payment, for them to determine if you can truly afford the mortgage. The payments in a workout plan are higher than the modification payment would be, so if you can make those payments, they’ll feel comfortable offering the complete modification.
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