Loan Modification FAQs

How many loan modifications can a borrower receive?

Borrowers are allowed to receive only one loan modification within a period of 2 years.

Can a lender perform an interior inspection of the house if they are worried about the propertys condition?

Yes. The lender can perform an inspection or any review it considers necessary to verify that the house has no physical conditions negatively influencing the borrower's ability to make the modified mortgage payments.

What is the Home Affordable Modification Program?

The Home Affordable Modification Program (HAMP) was created by the government. This federal program was designed in order to ease the financial burden of homeowners when paying their housing costs. HAMP helps homeowners by reducing their mortgage payments and make them more affordable. Our lawyers at Gallardo Law Firm are familiar with the process. They can help you determine which options you have and whether you qualify.

Can a lender include late charges in the loan modification?

It is expected that the lender waive all late charges accrued at the time of the loan workout. This can vary depending on the loan but its always useful to ask for a complete breakdown or description of all penalties and fees from your lender.

How does a loan modification affect my credit?

Individuals participating in Home Affordable Modification Program (HAMP) generally dont see a drop in their credit score since the government has requirements in which lenders report HAMP in a way that it doesn't harm the borrowers credit score. Nevertheless, there is no guarantee that a loan modification will not affect your credit score. If you have any loan modification questions or concerns, call Gallardo Law Firm.

What will I receive from my mortgage company?

You may receive a reduction in your principal. Mortgages companies are receiving incentives from the government to do so. There are certain requirements you need to meet which includes living in your house and have a mortgage of $729,750 or less.

What are the alternatives to a loan modification?

When the borrower doesnt qualify for a loan modification yet he or she cant afford mortgage payments; there are other options that will help the homeowner avoid foreclosure, which may include:

• Selling your your home for less than you presently owe the bank. The home is given back to the lender through a deed-in-lieu of foreclosure.' Applying for forbearance, which helps the lender reduce or suspend loan payments normally for up to 90 days. You can also find a tenant who will rent your home. The rent money can be used to repay the lender.