How long loan modification process

Speak with a bankruptcy attorney to find out whether filing bankruptcy would be a better choice. Lenders rarely put a stop on the foreclosure process until a workout solution is fully in place. You should ask your lender if your attempts to negotiate a solution will stop or at least postpone other collection actions.

If they do not, you should find out what that means for you. Push to have all default and foreclosure actions put on hold while your workout attempts are underway. By doing your part to keep the process on track, remain informed, and explore other options, you not only improve your chances of achieving a positive outcome, but you can also reduce the stress that commonly accompanies the waiting process.

Ralph R. Roberts is a consumer advocate, host of KeepMyHouse. Ralph is based in Sterling Heights, Michigan and can be reached at ralphroberts ralphroberts. Taking the reins this year is association veteran Leslie Rouda Smith. Here, Rouda Smith tells us about her plans for Read more. All Rights Reserved. The time involved to get all the paperwork together on your own end is brutal enough. Not to mention all the time it takes to have the bank review everything.

There are indeed steps you can control to minimize some of the wait time. For example, you can have many things in your package organized and laid out in a way that's friendly for the bank. However, some of these processes are out of your control and involve other people. When you apply for a loan modification, there are many people at the bank that get involved. Some of which extend beyond the bank depending on how your mortgage was initially set up. The loan modification process can typically go between 30 to 90 days sometimes longer if it's a complicated situation.

The bank is going to look at your hardship letter and determine the severity of your current financial situation. Reasons for imminent default include the loss of a job, loss of a spouse, a disability or an illness that has affected your ability to repay your mortgage on the original loan terms. Some lenders and servicers offer their own loan modification programs, and the changes they make to your terms may be either temporary or permanent.

The federal government previously offered the Home Affordable Modification Program, but it expired at the end of Now, Fannie Mae and Freddie Mac have a foreclosure-prevention program, called the Flex Modification program , which went into effect Oct. If your mortgage is owned or guaranteed by either Fannie or Freddie, you may be eligible for this program.

HARP has also expired. If you are struggling to make your mortgage payments, contact your lender or servicer immediately and ask about your options. Avoiding phone calls or procrastinating will only make matters worse. The loan modification application process varies from lender to lender; some require proof of hardship, and others require a hardship letter explaining why you need the modification. Ray Garcia, Esq. FAQ Have a question? Click below to see our answers to a number of frequently asked questions.

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