Many times when I speak with someone about the “rules of loan modification”, I explain that there really are no rules – that the process varies from lender to lender.

With the announcement of a new “Streamlined Loan Modification Program” from the government, I suspect that the rules of loan modification will become more clear for many people.

Fannie Mae has been working with FHFA and 27 different lenders and servicers in the HOPE NOW alliance to implement the Streamlined Loan Modification Program – so there is a great chance that your lender is participating.

Under the Streamlined Loan Modification Program,  your mortgage and escrow payments can be cut to 38 percent or less of an eligible borrower’s gross monthly income by some combination of:

• reducing mortgage rates
• extending the mortgage term up to 40 years
• forbearing on a part of the principal amount until the loan is paid off, then a balloon payment is required

Streamlined Loan Modification Program Eligibility Requirements

• You must own and occupy the property as your primary residence
• You must have missed at least three mortgage payments
• You cannot have filed for bankruptcy

Streamlined Loan Modification Process – Trial Period

The streamlined process allows you to sign a single document at the outset of the modification process that establishes a new monthly payment during a three-month trial period, and also sets forth the modification terms that will be permanent if you make the modified payments during the trial period.

Who To Contact about the Streamlined Loan Modification Program

Borrowers should contact their servicers if they think they may qualify.  At the same time, servicers will be identifying eligible borrowers and reaching out to them through the mail.

If an affordable payment cannot be achieved through the Streamlined Modification Program, lenders will still be working with people through the “traditional” modification process — or in other words, every situation is different and will be handled differently.

Learn How To Get Your Loan Modified On Your Own Without The Help Of An Attorney

Other Streamlined Loan Modification Program Official Press Releases

Federal Housing Finance Agency Press Release

Freddie Mac

Related Posts

• Arizona Loan Modification: Who Do I Call?
• Can You Qualify for Refinancing?
• Are Loan Modifications Working?
• Arizona Loan Modifications: Reader Shares Relevant Loan Modification Information

“Who do I call to help me with a loan modification if you don’t do them?”

I get asked this question no less than 5 times each day.

Usually, it is followed by a brief explanation of how I would be happy to pass on a few people that I have heard do a good job of helping borrowers stay in their homes by working with their lender… but we in no way endorse nor receive anything from these companies for referring people to them.

At this point, I usually gather the persons email and then type out an email with a few of the contacts that I can gather up of people that they can contact for help.

So I thought I would start a list of people who currently work in the loan modification business and at some point have somehow come across my path.

Just so you don’t miss it, I will put it in big red letters…

For a list of loan modification companies who could possibly help you depending on your situation:

—-> Arizona Loan Modification Contacts<—-

You can also get your loan modified without the help of an Attorney if you know what you are doing…

Learn How To Get Your Loan Modified On Your Own Without The Help Of An Attorney

Related Posts

• Streamlined Loan Modification Program Announced
• Can You Qualify for Refinancing?
• Are Loan Modifications Working?
• Arizona Loan Modifications: Reader Shares Relevant Loan Modification Information

We often talk to people who are interested in a loan modification and usually at some point, they ask the question:

Do I really need to get a lawyer involved with my loan modification?

My standard answer is “well, try to get your loan modified on your own with your current lender, but if they won’t modify your loan and you are in a situation where you can’t afford your mortgage, then it is probably time to hire a lawyer.

Last night, Paul from Kingsley Law left a comment on one of our loan modification posts about one thing that I wasn’t even aware of (remember, I am no loan modification expert):

Do you really need a lawyer when trying to get a loan modification done?

I guess it depends on how much you know about the ins and outs of loan modification and what can and can’t be done.

Learn How To Get Your Loan Modified On Your Own Without The Help Of An Attorney

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• Streamlined Loan Modification Program Announced
• Arizona Loan Modification: Who Do I Call?
• Can You Qualify for Refinancing?
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