What you need to know about loan modification
Loan modifications may not have been applicable to all loans, because most big lenders sell the loans to Fannie Mae, Freddie Mac or Ginnie Mae. These government-sponsored enterprises group the mortgages that they acquire and sell them to investors. In such cases, a loan modification was not always an option. However, now that the federal government has taken over Fannie Mae and Freddie Mac, you can expect more lenders to offer loan modifications. If a loan cannot be modified, the client has the option of applying for a “streamlined” refinance with the same loan servicer. It proves advantageous in using the current loan servicer, as homeowners can reduce the amount of paperwork, costs, and delays. Loan modifications are easier to complete in cases such as these, but are not limited to these alone:
• The Homeowner has fallen behind on the mortgage payments
• The Homeowner is financially affected because the principal loan amount is higher than the current appraised value of the home.
• The Homeowner currently has an interest only loan(s)
• The Homeowner is in an adjustable rate mortgage that either have not yet begun to adjusted, or are in their adjustment period.
• The Homeowner is in A Minimum Payment Adjustable Rate Mortgage called an Option Arm.
• Income has changed or expenses have increased
If you have one or more of these acceptable hardships then your chances of successfully completing a loan modification is greatly increased. Contact JNR Associates for a free analysis!
