Who has successfully done a loan modification and how cumbersome was it?
Hey Craig, I have a handful of customers who have negotiatied loan modifications and my interpretation is that it is a very deliberate process that varies depending on who services the loan as well as other factors. While the PROCESS varies depending on lender policies and their expertise in handling these situations, I can tell you the basis for deciding whether to allow a loan mod is usually pretty similiar. The key is DEMONSTRATED HARDSHIP as well as a belief that a modification will result in SUSTAINED HOMEOWNERSHIP. Trust me, the bank is not doing this for charity, it’s because it makes sense for them and may save them money in the long run Usually demonstrated hardship means the inability to continue making payments brought on by an adjustment in rate or a change in financial circumstances. If you’ve made your payments then they dont care how you get the money or how hard it is to make it, so usually you need to be behind at least a month or two. Your credit is going to take a hi
