Posted on: 26th May, 2011 12:21 am
Is that Loan modification can be done only when the loan goes into default ? or if i wish to pay in advance can i modify the loan and pay earlier ?
Loan modification is a type of hardship program. Unless you're in default, your lender won't be ready to offer you a mortgage loan modification. You should be at least 2 months in default and have some kind of financial hardship in order to qualify for loan modification.
If i would like to pay the loan amount in advance and wish to come out of the loan what would be the process ?
Hi unab,
You should contact the lender and pre-pay the loan. However, if your mortgage documents mention the clause of pre-payment penalty, then you will be liable for paying a pre-payment penalty for paying off your debts early.
Thanks
You should contact the lender and pre-pay the loan. However, if your mortgage documents mention the clause of pre-payment penalty, then you will be liable for paying a pre-payment penalty for paying off your debts early.
Thanks