Is This A Government Loan Modification Or An Alternative Loan Modification From Our Lender?by Confused with the Gov. Loan Mod Offer
Our lender told us we qualified for a Government Loan Modification. They lowered our loan 70,000 dollars, but we had to agree to pay 2300.00 a month for 3 months before they would give us the actual modification. Mortgage Loan Modification Answer:by Loan Modification Expert - Dan NorthYou are correct this is not a modification per the Government Guidelines of the Making Home Affordable Program. Since your payments went up it sounds like a repayment plan followed by a loan modification that may still be higher than your current payment until you have repaid the delinquent amount on your loan. Do not accept this offer! Make a counter offer to have the delinquent payments tacked onto the back end of your mortgage and have the lender waive any interest and penalty charges on the delinquent amount. If this was a HAMP modification your interest rate would be lowered to as low as 2% before a principal reduction was offered. My first guess is that you are being offered a Principal Forbearance and not a principal reduction which means that you would still owe the $70,000 when you sell or refinance but that you are not being charged interest payments on the $70,000. Under the Making Home Affordable HAMP program your modified mortgage payment should be no higher than 31% of your gross monthly income. That target monthly payment on your 1st mortgage includes the mortgage payment, homeowners insurance, property tax, any Home Owners Association Fees and is to be no higher than 31% of your gross monthly income. I want to see what you really qualify for on a loan modification so fill out the FasTrac Hardship Loan Modification Pre-Qualification Form. This will give me the information to see what Hardship Loan Modification you qualify for even if you do not qualify for the Government Program. Under the HAMP Program there is a three month trial period but your lender can elect to go straight to the permanent modification if you submit all the required paper work when you make your loan modification request submission. This could cause a problem for the lender to receive the Government Incentive Payments since the three month trial period is required to show that you can make the payments and do qualify for the modification under HAMP. For that reason your lender may require the three month trial period. If your lender offers you a loan modification that is not under the HAMP Program there is no trial period required. Pre-Qualify for FasTrac Hardship Loan Modification Free pre-qualifying for FasTrac Hardship Loan Modification. No charge to find out if you qualify and what modification you qualify for. Ask Your Own Mortgage Loan Modification Questions Ask and get answers to your Mortgage Loan Modification questions. What do you want to know or need help with? Got a situation you need help with? Just Ask. Can Chase Still Foreclose While In A Trial Modification? Where To Go From Here With PNC / National City I Requested Loan Modification But Chase Increased My Monthly Payment Starting A Trial Loan Modification With Chase Bank On An Upside Down Mortgage When Should I Stop Trying To Modify My Loan With Wells Fargo? Chase Home Finance Trial Loan Modification Never Ends - Will They Ever Approve a Permanent Loan Modification? Can I Rent My Home Out After A Making Home Affordable Loan Modification Is This A Government Loan Modification Or An Alternative Loan Modification From Our Lender? Confused By Chase Bank 1st and 2nd Loan Modification How Can We Find Out If We Are Eligible To Lower Our Monthly Mortgage Payment Loan Modification Home | Mortgage Modifications | Loan Modification calculator
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