Loan Modification–Definition

You may be hearing this term a lot around lately. It was interesting I was looking around for clients and for myself at doing a re-finance of their/my current mortgage. When I spoke to one Mortgage broker, he said something interesting, if you are looking to do a re-fi, you should just go to your lender and see if they can do a loan modification for you first, instead of trying to do a re-fi. Well I thought this was interesting coming from a Mortgage Broker but I appreciated his honesty when he said that. Of course it couldn’t hurt to go to the company that is already servicing your loan, who knows your payment history and what you have done in the past to see if they could go ahead and do something for you. <em>When you are asking a Mortgage company if they do Loan Modifications, that means do they have the ability to change the terms of the loan, ie, rate, payment, length of loan, etc. They can maybe fix your rate, combine a first and second, extend the life of the loan. I am sure there is a fee with such services but it may not be as much as a full re-finance and definitely less hassle since you have already been dealing with the company.

If anyone has done a Loan Modification with their Mortgage Company, let us know if it was a smooth process and also if you are okay with letting us know how much they charged to do it.

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~ by debt2dreams on February 16, 2009.

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