Loan Modification - FAQ
Q If I am already in foreclosure can I still qualify for a loan modification?
No, loans must be in foreclosure.
Q What is the minimum amount of time that I can apply from the origination date of the loan?
A minimum of 12 months must elapsed since the loan origination.
Q How many days must I be delinquent on my payments in order to apply for loan modification?
Your mortgage must be delinquent for a minimum of 61 days (3 full payments due and unpaid) in order to qualify.
Q Can I use a Loan Modification for properties I own as investments?
Loan Modifications can only apply to owner occupied property as their primary residence.
Q Will my income be verified?
Yes, the mortgagor must have proof of sufficient income to support a Loan Modification mortgage acceptance.
Q What if I have another loan on the property?
You cannot have another FHA insured loan on the property to qualify for a Loan Modification.
Q Who pays the legal fees and related foreclosure costs?
The mortgagor is responsible for legal and foreclosure costs. Theymay be included into the modified principal balance.
Q, What other fees would be charged?
All or a portion of the PITI (Principal, interest, and escrow items) may be included in the mortgage balance.
Q What is the interest rate on the mortgage loan modification?
Mortgage rates or note interest rates may be reduced below market.
Q What else can be included in a Loan Modification?
You can include all payments due including an additional month.
Q What about the late payments and late fees that are due?
Late fees associated with the current default may be waived.
Q What about administrative fees, who pays them?
Administrative fees for completing a Loan Modification are not passed on to the mortgagor.
Q Is there a limit to the amount of loan value with a Loan Modification?
The modified principal may exceed 100% of the loan to value.
Q Can I apply for a variable loan rate?
All Loan Modifications must be a 30 year fixed loan.
Q Is there a limit on the amount of a Loan Modification?
The limit is currently $625,000.
Q Do Veterans have different time limits for applying for a Loan Modification?
Yes, soldiers have up to 9 months after returning from service before foreclosure proceedings may begin and apply for Loan Modification.
Q What is the time limit for a Loan Modification?
Currently the time limit is October 1, 2008 thru September 30, 2011