Traditional Modification

Do you have to pay any fees for a traditional mod?

Mortgage Loan Modification Answer:

The banks do not typically as you to pay a fee to apply for a traditional loan modification.

However, since these types of modifications are in-house, the banks make up their own guidelines for them. I have heard of homeowners being asked to come up with the difference if their property values are upside down, before they can be considered for their bank's in-house modification. This of course prevents people from moving forward because most of the time, the difference between their property values vs their loan amounts are a very significant amount.

I should also mentione that if you decide to hire a company to help you apply, process, and negotiate your loan mod, then there is a fee for their services. Attorney based firms have stepped up fees, and others are not allowed to charge upfront fees until your loan mod is approved.

Hope the above helps.

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