Five Mortgage Modification myths emphasized incorrectly
The article linked below begged for clarification. Catherine Tripp lists five myths in the mortgage modification process and attempts to dispell them. The problem is, she contributes to the misinformation.
1) I have to hire someone to do this for me. While tecnically correct, Ms Tripp fails to explain the real world. The homeowner can attempt mortgage loan modifications themselves. They need to be prepared for a long wait however. Homeowner attempted modifications typically take nine months or so, if then. Modification files are not time stamped. The lender can deal with files in any order they wish. Underwriters are going to deal with files submitted by US attorneys first. That’s reality.
2) I must be delinquent in my payments to qualify. This is the most nefarious development implemented by the lenders. Again, a US attorney can get their client past this roadblock.
3) All of the mortgages I have can be modified. Ms Tripp gets this about half correct. Second mortgage modification negotiation is a separate process, but can also be accomplished. Investment property mortgages can be modified as long as the primary mortgage is in good standing.
4) The property is worth less than I paid for it, so the principal on the loan will be reduced. In fact, adjusting the principal on a mortgage is the last step in a negotiation, after all other aspects have been considered.
5) My original loan was “stated income”, so I do not have to provide tax returns. In fact, the lender will request recent bank statements and tax returns.
Read the article here
