I agreed to a loan modification, the payments are still too high , can i re-apply?

Asked over 4 years ago - Easton, PA

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?

Attorney answers (2)

  1. James S. Tupitza

    Contributor Level 18

    Answered . 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.


    The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the Commonwealth of Pennsylvania. Responses are based solely on Pennsylvania law unless stated otherwise.

  2. Paul J Molinaro

    Pro

    Contributor Level 18

    Answered . 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.

    - Paul

    ** This post and all others I make on Avvo are for informational purposes only. None of the information or materials I post are legal advice. Nothing I post as comments, answers, or other communications should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship. While I try to be accurate, I do not guarantee accuracy nor am I responsible for inaccuracies, errors, or omissions.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

26,376 answers this week

2,921 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

26,376 answers this week

2,921 attorneys answering