TRADITIONAL LOAN Modification
(San Diego, CA)
My property is now in preforeclosure. I applied for the HAMP program and was denied by my bank. They told me today they are reviewing my file for a traditional loan modification. My home is probably worth about $250,000 and my balance on my loan is $125,000. I have a 2nd (line of credit) on my home for $96,000. Do you think my bank would be more willing to grant me the traditional loan modificaiton instead of denying me and foreclosing on the property. Wouldn't they have to pay off my 2nd loan?
Mortgage Loan Modification Answer:
The main factors that will determine whether you are going to get approved or not for a loan modificatio are:
1. Your ability to afford the modified payments
2. You are presently experiencing financial hardship caused by job loss, reduction in income, medical problems, etc.
If you applied on your own, hopefully you did some research on the federal program guidelines as well as your bank's traditional loan modification program guidelines so that you filled out your application knowing that you fit within the guidelines with regards to your income and expenses.
If you need help, you can get help through a No Upfront Fee Loan Modification Company
who can help you do a free comprehensive analysis of your situation and know the guidelines used to qualify.