Having your loan with certain companies can have an effect on whether you are more likely to get a loan modification. If you got a “conforming” loan the chance of getting a modification loan is more likely. The reason why this is the case is because government controlled loans such as Freddie Mac and Fannie Mae can absorb any losses, plus they are placed under more pressure to help try and stop foreclosures.
FHA loans are backed by HUD, and if you have one of these loans then you are even more likely to get help modifying your loan. The rules of the FHA state that before foreclosure happens the lender has to try and come to some agreement, and it because of this rule that your odds of getting a modification mortgage is even better. However, with the loan being insured by HUD means that they make the final decision.
Bearing this in mind though, an FHA lender is not allowed to offer a loan modification loan upfront, but as long as the homeowner asks for the mortgage modification first, the lender must try and come to a resolution which the law states they are obligated to do and before foreclosing. This information definitely goes in favor of the borrower, which is something that people are not aware of, and it is because of this that most people give up at the first hurdle.
The same thing applies to anyone with a “sub-prime”, “alt-A” or “portfolio” you are more likely to get a mortgage modification, but only if you fall into certain scenarios.
Avoid Foreclosure and get a loan modification with lower payments.
Let LoanModDepot.com find a solution for you. Get Started Today!