subject: 6 Common Loan Modification Myths [print this page] Do I have to be late in order to get help? NO, you can still be current but maybe struggling to make your payments you can apply for assistance.
Will a loan modification reduce my principal? Possibly, beginning in the fall of this year you will start to see ONLY certain targeted areas be offered principal reductions. This will not be the norm for most homeowners.
Will a loan modification impact my credit report? YES, if you apply for the government program it will have a slight impact on your credit report. Even a regular modification could impact your report by stating financial assistance program on your report.
Does my Lender want my home? NO/YES, reason this is a no and a yes is because in some extreme cases where you are so far behind, it maybe more realistic and cost effective for the lender to actually foreclose than to try to keep a struggling home owner in their home. Last month we saw banks take back more property than ever before. Remember this is a numbers game to the Investors...
Will a loan modification eliminate all late payments and fees? NO, it most cases all late fees and attorney fees will be rolled into the remaining principal balance. I have however; have seen some lenders waive late fees but never attorney fees.
What can I expect if I do get a modification? If you get approved for the government program you will have to enter into a TRIAL MODIFICATION first. Once you show you can make timely payments on time for at least 3 months, you will then be reviewed for a FINAL modification. You can read more about this program at the Making Home Affordable website.
IF you have not researched the loan modification process and are interested in learning more about the government's loan modification program you can visit our blog for inside news and tips. http://blog.freehampreport.com or our website to see if you maybe eligible for a loan modification assistance www.freeHAMPreport.com a FREE service.
6 Common Loan Modification Myths
By: Professor Loan Mod
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