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How does loan modification work?

Posted on: 08th Apr, 2009 06:02 pm
Does the lender have to accept loan modification?
Hi, Well they dont have to accept anything. A loan mod is more like asking the lender to adjust the rate/month payment. They usually wont do this till your behind on payments. Most are willing to do it, and you can do this by yourself. There are many scams out there right now about loan mods and never go with a company that asks for money upfront as it will be more likely a scam.
Posted on: 08th Apr, 2009 07:24 pm
hi guest,

loan modification is one of the options to save your property from foreclosure. if you are delinquent on your mortgage payments, you can apply for mortgage modification by writing a hardship letter. the lender will judge your financial situation based on the hardship letter. the lender will agree to your request only if he is convinced that you cannot pay the mortgage dues at any cost.

the loss mitigation department of the lender will give you an alternative repayment plan. you will have to pay your mortgage dues according to this new plan. however, you should remember that the lender would add your past due payments to the loan amount.

thanks
Posted on: 08th Apr, 2009 07:55 pm
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