Are there any options for modifying my mortgage?

Are there any options for modifying my mortgage?

If this sounds like your situation, you may be eligible to modify your mortgage. Options include the Fannie Mae Flex Modification, which replaces the Home Affordable Modification Program (HAMP) that ended in December 2016. “Make the calls, and get the help you need.” – Andrea, saved $369 a month. Read the Full Story » How Does it Work?

When to request a mortgage modification after forbearance?

Those who are already in mortgage forbearance can request a modification after the forbearance expires if they still need mortgage assistance. Under the CARES Act, borrowers with federally-backed loans are entitled to up to one year of forbearance.

What happens if you get a principal modification on your mortgage?

In rare circumstances, lenders will actually lower the amount you owe, also known as a principal modification. These were more common during the housing crisis when loose lending standards prevailed and home values tanked, leaving many borrowers underwater with their mortgage.

What are the requirements for a loan modification?

Borrowers facing financial hardship—for any number of reasons—might qualify for a loan modification; however, eligibility requirements are different for each lender. Some lenders require a minimum of one late or missed mortgage payment or imminent risk of missing a payment in order to qualify.

When is a mortgage modification an option for You?

In most cases, when your mortgage is modified, you can reduce your monthly payment to a more affordable amount. A modification may be an option if: You are ineligible to refinance. You are facing a long-term hardship. You are several months behind on your mortgage payments or likely to fall behind soon.

How can I modify my mortgage to avoid foreclosure?

Modifying your mortgage can help you avoid foreclosure by—either temporarily or permanently—adjusting the length of your loan, switching from an adjustable-rate to a fixed-rate mortgage, lowering the interest rate or all of the above. Unlike mortgage refinancing, loan modifications don’t replace your existing mortgage with a new one.

What happens when you change the terms of your mortgage?

Under this option, you reach an agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc. In most cases, when your mortgage is modified, you can reduce your monthly payment to a more affordable amount.

Can a mortgage modification be reported to the credit bureaus?

If the modification is federally backed (i.e. owned by Freddie Mac, Fannie Mae, VA, FHA or USDA) and is a result of the coronavirus, then it will not be reported to the credit bureaus per the CARES Act. Otherwise, some loan modifications might be reported as settlements or judgments, which could result in a ding to your credit.