Loan Modifications Becoming Popular

In fact, these loan modifications are “flying off the shelf”… if they could fly and were on shelves that is.

I was talking with a friend last night. He’s getting a loan remodification. With rates at 4% or so, that’s tempting. I’m not sure I have the cash. Also, these have to be loans that are federally insured, like “Freddie Mac” or “Fannie Mae”.

These get passed around from mortgage service company to mortgage service company faster than the cold virus gets passed around in the winter so you have to check with your mortgage service company to SEE if you have a Federally insured loan eligible for a loan modification.

I doubt mine is but I’m checking.

I actually ended up getting a mortgage that promised us that after 5 years, we’d get an automatic rate reduction … not much. This micro loan modification educes payments by $20 per month or so! I was surprised that the lender automatically modified this loan because I figured they’d find some way to cheat us out of the promised loan modification through the “fine print.” You know “I’m sorry Mr. Huckaby, we determined that you thought about being late on your payment once and so we can’t honor our Loan Modification clause in your original mortgage deed!”

They must have forgotten to jerk me around since I’m paying such high rates when everyone else who could has refinanced already!

Anyway, with rates this low, if you DO have a federally insured loan, you may be eligible for sweet deal on a loan remodification right about now.

The first step would be to talk to your existing mortgage service company and see what they’ll do to keep you happy.

If you are facing foreclosure there are lots of companies vying for your business. Below is an affiliate link. I can’t vouch for the services at all but they may be an option for you. You may also want to talk to non-profit credit counselors who may be able to help. The Loan Modifications I’m referring to was for folks who – like my friend – are NOT behind in their payments.

Related Affiliate Link (no warranty implied!): Stop – Before Foreclosure
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