What do I do if bank denied my modification?
A loan modification requires the bank’s cooperation and acceptance. However, if you file for Chapter 13 you can force the bank to give you 5 years to pay the past due amount. Additionally, you can also petition the federal court for a loan modification as part of the Chapter 13 case.
What is loan modification?
Loan modification creates a permanent change to one or more of the terms of your mortgage. A loan modification can lower your monthly payment by eliminating late fees, reducing your interest rate, extending the time to repay, and lowering your principal balance. Loan modifications are intended to provide homeowners with a long-term solution to… Read More »
Will a loan modification lower my payment?
Yes, a loan modification can lower your mortgage payment. The loan modification may also eliminate law fees, lower your interest rate, extend the time to repay, and lower the principal balance of the loan. However, in some circumstances, the modified mortgage payment will be higher than the original payment.
