Trial Loan Modification Period What An Owner Cannot Do
by Ms. Alhambra
(Pinole, CA)
What if a homeowner buys another property before going into a 3 month loan modification on another property? What is the chances of being approved for a permanent loan modification.
Mortgage Loan Modification Answer:
by Loan Modification Expert - Dan North
That depends on a few factors but your lender is going to question if you really have a financial hardship if you qualified to finance another property.
They will want full documentation on your financial situation and could just disapprove your modification out of hand based on the fact that you had the finances to purchase a second property.
Is this second property an income property? Does it already have renters that make it a positive cash flow?
If you want me to give an informed answer to your question I would need a full evaluation of your situation. Complete the Pre-Qualify for FasTrac Hardship Loan Modification form and I will evaluate your situation to more accurately answer your question.
A permanent loan modification after the trial modification period may still be possible but if you really need a mortgage modification you might want to hold off on purchasing that second property.
You also need to consider that after a loan modification is made permanent you may not be able to qualify for financing to purchase the second property.
So what you really need to look at is the possibility that it may be one or the other.
It all comes down to which option, loan modification or purchase 2nd property, gives you the most financial benefit?
