How much time in advance from the auction date should a loan modification be done?


#1

Need info on loan modifications…


#2

Vince -
Its always better to have things handles sooner then later. As time goes on your credit gets worse and the lender is closer to foreclosure. I have seen hundreds of homeowners fight for a loan modification, only to find out they were declined after many months of dealing with the banks. Typically, the bank is still proceeding with the foreclosure while reviewing the loan modification. One of the unintended consequences of fighting for a modification and getting declined is foreclosure. This is avoidable, however, the homeowner needs to be realistice. Modifications are given when there is enough income to support housing expenses of 31% of the actual income. If this is not realistically the situation, ie if there is no job, low income or other circumstances, then the mod will not happen.
Last I looked 90% of the modification requests are declined and 50% of the ones offer fail within the first year. It would be great if the banks moved quicker, so the homeowner would know where they stand. A mod is great if it works out. If not a short sale is better then a foreclosure.
If you want additional information or want to review the specifics of your situation, then contact me at the e-mail or phone below. Be sure to include if there is one or two loans, if they are purchase or refinace loans, what bank(s) are servicing your loan and what your current hardship circumstances are.
Have a great day.
BOB, MBA, CDPE
bob@inspiragroup.com
949-387-0500