Do lenders REALLY modify loan terms or is it all smoke?

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I called Countrywide and they told me to call back after I get all my financial info such as cable bill etc. Will they really change my loan terms? As of next month I will not be able to afford my current loan payment amount. So far I haven’t been able to meet ANYONE who has gotten an actual loan modification, instead all the agencies suggest I do a short sale, they will list the property and for me to start missing my payments. Even an attorney advised to pay him $ 3500 upfront but he couldn’t promise my lender would modify my loan but if they couldn’t that he would handle the short sale (and of course make tons of money off of it). PLEASE HELP!
Robert I think you are right, it’s a bunch of puff. people get NO help while the bankers who are screwing them over do.

  1. Anonymous February 2, 2014
    Yes, lenders DO modify loans, but only under certain circumstances. Do what Countrywide told you to do as far as gathering information and then call them back. I do several loan mods per week.
  2. Anonymous February 2, 2014
    From everything i have read in newspapers, online etc, its mostly pufferyFor instance- In marketing, advertising and testimony before Congress, Countrywide Home Loans has said repeatedly that it is working hard to modify the mortgages of financially strapped borrowers caught up in the subprime meltdown. But in a New Hampshire court, attorneys for the lending giant are singing a different tune, describing such assurances as “mere commercial puffery.”
  3. Anonymous February 2, 2014
    Yes the banks will modify loans but you have to meet certain criteria. Check out this website for more information http://www.makinghomeaffordable.gov. There is a good FAQ on the site too letting you know the ins and outs of the modification process.You should do your best not to miss your payment otherwise you will start down a path where you may not be able to do a modification. I think even if you pay as much as you can it is better than missing it all together.
  4. Anonymous February 2, 2014
    Yes, banks have been doing loan modifications. Get all your paperwork together so the mortgage company has all the info they need to process everything and make a decision. It is in the banks best interest to keep you from going through foreclosure. It costs them a lot more money(an average of $ 50,000) to do a foreclosure than a short sale or loan modification. If you get overwhelmed by the process and need to use an agency do not use any of the ones that told you to miss payments. It is actually considered fraud on their part for them to suggest you do that. You do not have to miss payments to get the bank to agree to a short sale. You just have to document a hardship. You also do not need that attorney for $ 3500. If after going through all your other options you decide you need to sell all you need is a realtor. Any good realtor can handle getting the bank to agree to a short sale and then do all the paperwork for you. And remember if you do a short sale on your owner occupied property you do not have to pay taxes on the sale like you did in the past because of a new law passed this year.

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