Mortgage Modification FAQ
I don’t want to file for bankruptcy, will this help me instead?
Yes, if your only debt is the mortgage. Modification and a bankruptcy will help you if you have lots of credit card and other debt. We need to review this in detail with you.
How can I reduce my mortgage payments without refinancing?
Hit the lottery, receive an inheritance or obtain a mortgage modification and/or have a lien stripping done.
Would this be good for me now that my home is worth much less than I owe on it?
If you are underwater, a mortgage modification will be your primary choice. If you have a second mortgage and the first puts your house completely under, you definitely want to meet with me; we may well be able to get rid of the second for you.
Why do I need to provide you with pay stubs and bank statements multiple times?
Multiple copies of your paystubs and bank checks are needed in order to first quantify your data and see which type of modification program you are eligible for and to fill out the application. By the time the application is filled out we may need updated paystubs and statements to send to the mortgage company. There is also a possibility that your mortgage company will request additional paystubs/bank statements.
Why is it taking so long to get an answer as to whether I have been accepted for modification?
Once an application is mailed in to your mortgage company, a reviewer is assigned to your case to make sure that the application is complete. This information also gets sent to a Single Point of Contact who oversees the entire process and acts as a liaison between the mortgage company and us. Once the file has been reviewed for completeness, it is sent to the underwriters where your application is analyzed and a decision is made as to whether you have been accepted for modification.
Even if I am accepted for the trial period and I make the required payments, am I guaranteed to get permanent modification?
It is not guaranteed. However, in August 2013, the U.S Court of Appeals ruled in Corvello v. Wells Fargo Bank, N.A, that there is “no permanent modification until a permanent modification agreement is signed, but the servicer [is] obligated to offer that agreement if the borrower fully complied with the trial period plan.” Unless the mortgage company notifies you that you do not qualify for permanent modification when you have completed trial period payments, they are obligated to offer permanent modification to you.
How much will my payment go down by?
There is no set answer for this and it depends on the quantification of data as done between us and the underwriters.
I have payment arrears; will my modification tack this amount to the end of my loan once I am accepted for modification?
Again, this depends on the type of loan that you have and whether you are eligible for this type of modification. Each case stands on its own. We will act in your best interest.
Let us know what questions you would like to see. Email us your questions/comments; no one will call you unless you ask us to. Thank you.
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