the loan company approved us for a loan modification, but since my husband's pay went down, can I have them review it? Can I reapply?
A few years ago, the general rule for most of the big lenders was one loan modification and no more. Then, as the market continued to slide down, lenders said, one loan modification, then maybe another after one year. Now, there are no such general rules. Lenders are very interested in substantial changes in a borrower's finances at any time during the loan modification process (whether the borrower's situation gets better or worse). In may cases, the loan modification agreement explicitly states (and makes the borrower sign to verify the fact) that nothing has substantially changed with regard to the finances on the application.
Something that any borrower looking to modify a loan needs to consider is whether the home is affordable (no matter whether the rate is 10% or 1%). If the loan modification is the best ever - 0% fixed, balance reduction to market value (something that almost never happens, by the way), and forgives all late fees/penalties but the homeowner still cannot afford the payments, it is no different than a 10% fixed rate.
Each lender is different, but some will work changes right up to the last minute of the deadline to accept the loan modification. Other lenders set a foreclosure sale date in stone, and will not make any last minute changes other than a denial.
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One of the best resources in www.makinghomeaffordable.gov I think you may reapply for a modification if you mortgage payment is more than 31% of your income.
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