Contra Costa
Real Estate Resource
Real Estate Resource
Loan Modification
Loan Modification
Your mortgage lender may agree to modify the terms of your mortgage loan. Your loan could be permanently changed by adding missed payments to the existing balance, changing the interest rate, making an adjustable mortgage a fixed-rate mortgage or extending the number of years you have to repay your loan. The willingness and ability to modify your mortgage varies by lender and requires a hardship package with income and asset documentation.
Important note: There is a very fine line for approval of a loan modification. A hardship is required to be considered but you must also demonstrate that you are fully able to make the payment on a modified loan. If the financial hardship is too severe, the modification request will be denied. Many lenders have a "one and done" policy. You have one chance to get a loan modification approved or they are done with your file. It is important that you prepare and submit a complete and accurate loan modification package the first time. To help you get started, we have created a Loan Modification Hardship Package and a Loan Modification Debt-to-Income Calculator.
The California Department of Real Estate has issued a Consumer Alert regarding the payment of advance fees for loan modification services.
You should also consider contacting the Homeownership Preservation Foundation which operates a Homeowner's HOPE Hotline: 888-995-HOPE. There is no cost to homeowners for contacting a non-profit advisor.
Making Home Affordable program can help you determine if you qualify for a Loan Modification but the actual Servicer of your mortgage (the company to whom you make your monthly payments) will make the final decision to grant or deny your loan modification.
You might also want to take a moment to read about other Options to Foreclosure.
Mortgage Forgiveness.
It is important to know that any portion of the mortgage that is unpaid either with Lender agreement, Short Sale or foreclosure, it is potentially taxable as income unless you qualify under the Mortgage Forgiveness Debt Relief Act. Please consult with your Tax Advisor.
Your mortgage lender may agree to modify the terms of your mortgage loan. Your loan could be permanently changed by adding missed payments to the existing balance, changing the interest rate, making an adjustable mortgage a fixed-rate mortgage or extending the number of years you have to repay your loan. The willingness and ability to modify your mortgage varies by lender and requires a hardship package with income and asset documentation.
Important note: There is a very fine line for approval of a loan modification. A hardship is required to be considered but you must also demonstrate that you are fully able to make the payment on a modified loan. If the financial hardship is too severe, the modification request will be denied. Many lenders have a "one and done" policy. You have one chance to get a loan modification approved or they are done with your file. It is important that you prepare and submit a complete and accurate loan modification package the first time. To help you get started, we have created a Loan Modification Hardship Package and a Loan Modification Debt-to-Income Calculator.
You should also consider contacting the Homeownership Preservation Foundation which operates a Homeowner's HOPE Hotline: 888-995-HOPE. There is no cost to homeowners for contacting a non-profit advisor.
Making Home Affordable program can help you determine if you qualify for a Loan Modification but the actual Servicer of your mortgage (the company to whom you make your monthly payments) will make the final decision to grant or deny your loan modification.
You might also want to take a moment to read about other Options to Foreclosure.
Mortgage Forgiveness.
It is important to know that any portion of the mortgage that is unpaid either with Lender agreement, Short Sale or foreclosure, it is potentially taxable as income unless you qualify under the Mortgage Forgiveness Debt Relief Act. Please consult with your Tax Advisor.
