What do we know about home loan modification?

Since my wife had been sick I have made a couple late payments. Yesterday they sent me a brochure about loan modifications. Has anyone tried it or know about them. It was kind of vague on what they offered.

The typical mods that I've seen (I work in mortgage servicing) involve deferring some portion of the outstanding principal balance to the end of the loan, repayable in one single payment. From there, the interest rate may or may not also be adjusted to get to a new monthly payment.

Each case is going to be slightly different, but it may be worth exploring with your mortgage servicer.

Correct. It is called the Home Affordable Modification Program HAMP. The servicer may use a 'cascade' of options to reduce the payment: converting ARM to Fixed Rate, lowering the interest rate, extending the term. There is also a trial period before the modification becomes permanent.

Contact your current mortgage servicer.

HAMP LINKY

Unfortunately, a very high percentage of the modified loans ultimately become delinquent again. However, it can reduce your payment and give you a better chance.

I have nothing constructive to offer. My best wishes for your wife and family.

Yes, best wishes to Funnel Cakes.

Thanks. I will try and contact someone about it. She is doing better and has gone back to work part time but there are still quite a few bills coming in and she still has a bit of therepy and doctor visits to go.

Sorry to hear about that, Wally. All I know is according to my aunt, who did a modification a couple years ago. According to her, she got berkeleyed; as in, she'd do better now by refinancing, but her hands are tied because of the modification. I do not know how close to the truth that is. I do know that if you haven't refinanced recently, you might be able to save a ton of money on interest.

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