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I have an 80/20 mortgage loan . the second loan has to be paid in full in 7 years and the other will become adjustable in the same time. based on this can i get a loan modification?

You say the second mortgage has to be paid in 7 years. What year will that be? That is the question. Is your mortgage going to change shortly? One of the main components of qualification for loan modification is that you have to have had suffered a financial hardship, a "rate increase" being considered one. Another being whether you are still current or not on your mortgage payments. PLease answer those questions first.

It makes it a lot tougher while in bankruptcy to do a loan modification. Most lenders will not work with you, but it might be still worth it to try and call them.

My personal opinion is that it will be very hard to get your loan modified being that you just purchased your home in December, ot it could be that I am missing something. How did you get a loan to begin with ?

How much do they typically lower the interest rate and do they base the payments off the remaining principle owed or the original loan amount?

This really depends on several factors the most important being: 1) Your current financial situation (how much you can afford) and 2) who is negotiating this on your behalf (is it you or a professional company)> This really differes case by case.

it is not actually the "type" of loan and interest rate that determines your eligibility for a loan modification. What is important are 3 things: 1) You not being able to afford your current mortgage payments but the desire to keep your home 2) Still be employed or have some kind of income 3) have suffered a financial hardship of some sort (loss of work hours, etc...) Do you satisfy these conditions?

I have been late on my last months payment 10days after the grace period. It seems that I will be late this month also, but will pay before the end of the month. Will I still be able qualify for modification?

Yes, if they are both with one lender, it is a lot easier. Typically the modification is done so that you can afford the overall mortgage payments. If the 1st and 2nd are with 2 different companies, then it is a bit more difficult.

It makes it a lot tougher while in bankruptcy to do a loan modification. Most lenders will not work with you, but it might be still worth it to try and call them.

I called my Mortgage Co for a loan modification because my taxes just about double, and my husband took a pay cut of 30% and it is getting hard to pay, they told me that they can't help me because my debt ratio to my income was 63%,they only accept up to 45% they told me to call when my financial situation change, I'm very confuse because if my debt ratio was only 45% I sure don't need a modification, I wonder who qualifies for this program, so far I never been late on my payments and I still have an equity on my house of $450,000.00, I tried to sell it but the offers are about 1/2 of the appraisal, can you help me to understand what are the qualifications for this loan.

Well to clarify your situation, a loan modification isn't a new loan. It's taking the one you currently have and then adjusting the terms on it. From a banks perspective, they aren't just modifying loans for anyone who decides they want one. The bank sees that you are making payments to the home and are on time, so as far as they are concerned, you have enough surplus of cash each month where you can stay on the repayment plan for your loan. The modification will also depend on which bank owns your loan. Each bank will have their own circumstances for what they will modify. If you personally haven't had any luck, it might be time to have a professional company give it a shot.

I am a senior with a pension of total $1800 a month. Does that qualify as income? And what is your fee? thanks.

Me and wife are employed and with a stable job.But due to some unexpected expense we fell behind our mortgage.We have an house worth $316000.00,which is split into 2 mortgages.One for 250k and other for 62k.Both the banks sent in the forclosure letter.But we did work out a plan with them and are now paying as per the plan. My question is that the big loan is for 7% and the small one is 10%.Currently we have to pay $2200 and $544 to these two banks.One is ARM other is interset only. Is there anyway we can get a better rates which can bring down these numbers.We both bring in $5500 gross monthly.Since thes delinqincy in mortacge our credit may not be that good. Please advice.

It looks as if you are a good candidate for loan modification. SInce your credit score has probably been damaged a bit and the house valuse is probably not there, your only option to get a lower payment is loan modification. You just have to be able to show to the lender that you cannot afford payments at these levels. How did you get the initial loan modification? Yourself or through a company?

Sure. It depends on the lender, but if you have held up your end of the bargain and made payments, more than likely the lender will work with you if your financials have changed since the last modification.

If you are under a loan modification program with your mortgage company, can the house be put up for sale?

Yes, when your loan is modified, it is permanent and you can think of it as a new loan with new terms, so you can do anything to the house that you would under normal conditions.

After a sheriff sale can you still get a loan modification if your lender has bought your home?

The short answer is No. Once the property is bought back by your bank, you now have to buy it back with a brand new loan and can no longer modify your previous loan.

My friend and I bought a house for 2 years now. We are not in good terms anymore and we want to be separated. One of us decided to take the house if well get approved for loan modification. We are waiting for almost two months now. Still paying on time for the mortgage. Do you think it will get approve by the bank.? We both earning good money. Do u think only one of us who decided to take the house pay for the mortgage? So the other one can just claim he is out of the house? Need your advise.

This is a unique situation. The fact that both you and your friend are earning good money and the fact that you are still "current" on the mortgage are actually not good for getting a loan mod. A psuedo "requirement" for qualifying for a loan modification is that a "financial hardship" must have occured. A financial hardship could be a rate increase, job loss, etc... So what I recommend is to do what is right for your life (e.g. separate, etc..) and then decide what to do to save the home. Hope this helps.

we filed bankruptcy in march 08 and i have been laid off we got behind 2 payments on our mortgage they setup repayment thru our lawyer that is $400 extra a month for 6 months i found another job and we made all our payments but i was laid off again recently and we missed the $400 PAYMENT for december I dont know what to do we need a modification if we could lower our payment i know we would be ok im really scared of losing our house we have 3 kids and need help thanks

So as I understand, you are now unemployed? If so, that makes it a bit more difficult to negotiate a loan modification as lenders are looking for "some kind of payment" on the new modified mortgage loan. What are the chances of you getting another job anytime soon? Have you asked your lawyer on what the next step would be?

We have the loan principal balance 475K with appraisal value of the house over one million$. We have a 5/1 ARM loan with rate 4.75% which will expire in February, 2009 We listed the house on the market about two months ago but now we decided to stay in the property if we will be able to refinance the existing mortgage or do some loan modification. Is it possible to modify the loan in our situation if we will remove the house from the MLS listing? What is the period of time the house must be off the market in order to get the refinancing or modification of the loan? Please advise!

Well, it seems that you certainly have enough equity in your home to refinance your mortgage. Currently the rates have come down to historic lows so my recommendation would be to refinance instead of loan modification. If you have good credit, you should not have any problems refinancing your home which is certainly the only option with so much equity in your home.