Loan Modifications that will NOT work
Loan modifications are an extremely new phenomenon. As I am writing this today, June 22, 2009, who would have as early as one and half years ago that such a thing would ever exist. I, my self was skeptical about mods until late 2008. Now I am in the thick of it. This is a fascinating field.
Since I started NW Loss Mitigation, LLC, the main question has been, do I qualify or do I not qualify for a loan mod. Because this type of transaction is so new, the banks themselves have been learning the business, and there is plenty of misleading info, expectations are all over. In this post I will just focus on the loan modifications that will not work.
Modifications That Will Not Work: We can’t help if any of the following is happening.
- A loan modification or rate freeze has taken place in the past twelve months.
- Customer is in a current loan modification with another company.
- Customer is presently doing his own loan modification
- The customer already has a low fixed rate, is not behind on the mortgage and there is no hardship.
- Everything is fine except that the property has lost value.
- The loan is an ARM that will not adjust within the next six months.
- The loan is an Option ARM that is not late or has not adjusted.
- A loan with a private hard money lender when there is equity in the property.
- A customer is claiming a hardship, but is showing a lot of assets.
- Property has lots of equity. The bank is better off foreclosing.
- Insufficient income. Customer unable to support the loan even with a loan mod
- Too much unsecured debt. This includes credit cards, medical and other debt.
- Too much debt. Customer has car, boat, and other similar financial commitments.
- Un-employment. Banks don’t consider un-employment income stable.
- No proof of income. Customer has insufficient income documentation such as pay stubs, bank statements, etc.
- Customer missed filing taxes. Banks require to presenting tax returns. Sometimes this can be overcome, but don’t count on it.
If you need help contact us at 971-222-3734 or info@nwlossmit.com.
