Loan Modification Facts & Myths

What are the facts and myths surrounding loan modifications? It’s very important for homeowners to know the facts before they pursue a loan modification for their home.

Loan Modification Questions

Do you need to be late on your mortgage to receive a loan modification?

No. You can still qualify for a loan modification even if you haven’t missed a mortgage payment. Banks are, however, giving priority to homeowners who have already missed a mortgage payment.

A loan modification can prevent a mortgage foreclosure?

Yes. This is exactly the purpose of a loan modification. Monthly payments are restructured to enable homeowners to be able to afford the payments today, and in the future, with the goal being to reduce the chance of foreclosure on your home.

Do you need to hire a specialist to get a loan modification?

No. Homeowners can get all of the information they need from websites like this and the FDIC.gov website. The loan modification process can be quite complex, however, and just as you would hire an attorney to represent you in court, loan modification specialists can ensure a higher chance of success.

Banks are doing everything they can to help homeowners.

No. Banks are looking to squeeze every penny they can out of homeowners. It is in your best interest to initiate the loan modification process as soon as possible, and be prepared to negotiate. You may be able to negotiate a reduction in principal and payments returned.