There really is no such thing as a non-monetary cost in a mortgage loan modification. The bottom line is that a loan modification reduces a lender’s profitability. This is the very last thing any lender wants, and contradicts the whole reason they are in business at all! There are, however, many indirect costs that result  … Read more

Many lenders are participating in the Home Affordable Modification Program. This government-sponsored loan modification program offers incentives for lenders to help troubled homeowners with their mortgages through a loan modification. Successful modifications rewarded Currently, many lenders are extending temporary loan modification terms to borrowers. If the borrower proves they can make their payments during trial  … Read more

If you are looking at foreclosure or delinquency generally, the forbearance agreement may seem like the perfect solution to your troubles. Essentially, you get more time to get your life in order, and the bank agrees to let you do this on the promise you will repay what you owe, in full. However forbearance agreements  … Read more

Right now, because of persistent mortgage and housing troubles nationwide, it seems as if the mortgage modification process has only gotten harder. It has and it hasn’t. You need to know yourself as a borrower and as an income earner, if you are need a mortgage modification like forbearance or a loan modification. Don’t be  … Read more

Before approaching your bank about a mortgage modification, you need to ask yourself several questions: 1.)   Is my financial health in trouble in the long or short term? 2.)   What can I do now to improve my financial standing/credit rating? Depending on how you answer, you may be looking at forbearance instead of a loan  … Read more

Loan modifications can be gruesome for both banks and borrowers; the bank doesn’t know how much your home cost and you are sick of paying for a property that is worth half of what it was a year ago. When filing and reviewing your mortgage loan modification, be realistic but assertive. Don’t accept what you  … Read more

The Fannie Mae program allows trouble homeowners to release their deed to the bank via the deed-in-lieu option and stay in their residence. For many, this may not sound like much of an option, but where there are few options besides foreclosure it may be preferable for a time. The reality is that a deed-in-lieu  … Read more

A forbearance agreement might be thought of as a short-term loan modification. When you anticipate being unable to make your mortgage payments for a short period of time (6 months or less, on average) the bank may defer your payments. Those missed payments and interest will be tacked onto the principal of the loan until  … Read more

For troubled mortgage borrowers, it may not be so obvious as to when it is appropriate to negotiate for a forbearance agreement instead of a mortgage loan modification. As financial tools that can save borrowers from foreclosure, they do the same for the bank. The bank, weighing its options and intent on maximizing profitability, will  … Read more

Mortgage loan modification has benefited millions of Americans by reducing the principle on their loans their monthly payments through refinancing. Many feel like they are finally getting a square deal after the neighborhood home value has plummeted. This is not always the case. Banks have a number of weights and measure they employ to determine  … Read more