A loan modification is an adjustment to the original terms agreed upon by the lender plus the borrower, there are actually three areas that may be adjusted, they are: Interest rates, principal owed and length with the loan. The outstanding principal owed would be the 1 region a lender is least likely to need to modify, but in some circumstances they need to negotiate this location with the borrower to make a modification work.
Here is an article from the NYDaliynews about success rate of Loan Modifications:
Federal home loan modification program struggles with success rate of just 4%
Slightly more than 31,000 homeowners have received permanent loan modifications since March as part of the government’s mortgage relief plan – just 4% of borrowers who have signed up.
Among big lenders, Bank of America had the worst results. The nation’s largest lender had only completed 98 modifications for the 160,000 borrowers who’d signed up by last month. GMAC Mortgage had the most of any lender at 7,100.
The Treasury Department said it will step up pressure on the home lending industry to improve.
The Obama administration‘s focus is to “get as many of those eligible homeowners as possible into permanent modifications,” said Phyllis Caldwell, chief of Treasury’s homeownership preservation office.
Under the program, eligible borrowers who are behind or at risk of default can have their mortgage rate reduced to as low as 2% for five years. They’re given temporary modifications, which are supposed to become permanent after they make three payments on time and show proof of income and a financial hardship letter.
Lenders blame the low success rate on borrowers who don’t return all the paperwork
I suggest you contact Nathan Nelson at Virtus Law for a consultation to see if a loan modification is right for you.
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To find out more about the short sale process, Click here.
Put your mind at rest about being foreclosed on and give Short Sale Dale a call! Give me a call or send me an email and we can meet and talk about your options. No documents, no sales pitch, just the facts that you need to know so you can make the right decision for your family, like I did.
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Dale Frisch 612-284-8161 or Dale@AttractiveRealty.com
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Contact Nathan Nelson with Virtus Law PLLC 763.432.2169 Or Info@virtuslaw.com
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Call 612.284.8161 or Email Dale@AttractiveRealty.com