Does any body know how loan modification works?
now that the home prices are low, refinancing is out of the question, so how can I extend the laon for longer time or more years, for example, my loan will became adjustable in 09 and my house is value below the amount of my loan, how do I negociate with the bank to extend my loan for more years at the same interest rate?
Loan Modification vs Refinancing
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Call your lender and ask them to talk with loan litigation department. You can also look on their web for loan modification package- some of them have the packages ready. Be prepared to give then your current financial statements and hardship letter to prove, that your financial or life situation change permanently and you can’t make your mortgage payments- if you prove them , that value of your house go down and there is almost no equity- you have more power to negotiate with them new terms on your loan.( if you have more then 20% of equity in your home- your chance to do modification is slim). If this don’t work- use the loan modification company who has attorneys on bord. Good Luck.
Contact the bank and ask them if they do modifications. They are probably going to tell you you need to refinance, but it doesn’t hurt to ask.