How does a lender determine a borrower’s eligibility for a loan modification? The lender’s usually need a loan modification when they are in a mortgage foreclosure action and the standard is they look at 31 percent of your gross income and see whether or not they can modify your loan for principle, interest, taxes and insurance to see if it comes within the 31 percent. I do not know what guidelines they have and how they do that but they usually do not forgive principle. They try and spread your loan out over say a 40-year amortization to see if they can make that work, depending on the size of your loan.
They usually reduce your interest rate to in or around four percent and they may modify this for the entire 40-year period or they just may modify it for a short period of time. But each lender looks at each loan on an individual basis but the 31 percent of gross income is what they look at. If you are in foreclosure and want to have a mortgage modification you can call my office and we will undertake representation of you in the foreclosure. My associate Jaleh Piran-Vesseh has done a lot of work as far as modifying mortgages.
That’s not, you’re not guaranteed that you’re going to get a mortgage modification and it’s up to the individual lenders. There are some other programs that were available which if you haven’t missed a payment in 12 months and your loan was current, the lenders would give you, refinance your mortgage even if the value of the property was less than the amount that was owed. I don’t know the name of that program but that was available. I don’t know if it’s still available or not. But that hopefully that gives you some insight about getting a mortgage modification.
If you have some questions about it, well give me a call at 727-847-2288. Thank you.