The loan modification process is complex. Therefore, it is only natural that homeowners considering this course of action will have questions about the process and what it involves. Many homeowners are not aware of the benefits of modifying their loan to suit their current financial situation. This is why it is always recommended that the services of a loan attorney or loan modification company are employed, as they will be able to explain the process fully and will be on hand to answer any questions that may arise during the process. This list includes some of the more commonly asked questions when it comes to loan modification.
Q: How often can I receive a mortgage modification?
A: You can only be granted a loan modification once during any 2 year period.
Q: Will I incur fees if I decide to proceed with a loan modification?
A: If you decide to seek the assistance of a loan attorney or modification company, then they will charge for their services. However, it may be best to consider an attorney or company’s fees as a necessary expense; as they can help the process move faster and help with the paperwork involved. Also any foreclosure costs attached to the property will also be included in the modification.
Q: What if I have any outstanding late fees?
A: The late fees will be waived by the lender.
Q: Will the term of my loan renew?
A: It is expected that the lender will amortize (reduce debt by instalments) the full modified loan amount over a fixed period of 30 years, beginning when the first payment is made.
Q: Can anyone get a loan modification?
A: In short, no. There are certain criteria homeowners must meet to be considered for modification.