Loan modification - help

currently started the process with our bank (HSBC) and need any tips/advice I can get!!

We are not using a lawyer, doing it on our own....we are currently at 6% fixed rate (bought the house in 05) and we don't qualify for a refinance...

Any good advice on how to get approved??? also, what did the bank did for you???

TIA!!!

Re: Loan modification - help

The bank refused my modification 5 times and then put me in forebearance which killed my credit.

It took 3 months to rectify it.

I was current and had financial hardship.

I think the modification process is crap.

I wish you luck but the program is very limited and has a narrow scope.

Re: Loan modification - help

I went through a loan mod. when my husband lost his job back in 2004. It went through successfully but nowadays it's hard to get one and often you get a better rate just doing a refinance through a broker.

Banks are not known for low rates. Last week I called my bank to get a refi rate and was told it's 4.25 to refinance through them, My current rate is 4.375/30yr which I got last year so you'll if I went through my bank, it would not be worth it to refinance.

I called a broker and got a rate of 3.75. Same term and conditions...

Yes, I had to pay 2k in lending fees to get that 3.75 rate, but it's a WAY better deal than a 4.25 rate anydays.

Message edited 11/9/2011 12:58:07 PM.

Re: Loan modification - help

We got a loan mod last year and it was really easy. We got a much lower rate and cut the term on the loan also. It cost about $2k but it was cheaper than refinancing and saved us a lot over the long term. We did not use a lawyer either. The loan closing took about ten minutes to sign the documents. We just had to submit certain documentation (current insurance policy dec page, paystubs, etc) and they ran our credit and that was it. Very simple.

Re: Loan modification - help

My boss just did this but she used a lawyer. she paid them $3000 or $3500. It took a little over a year to get finalized but she is extremely happy that she did it. She started the process August 2010 and it was just finalized and officially signed off on this past October. The trial period for the lower interest rate and lower payments started back in April I believe but the final official modification was signed in October. I think her interest rate went down 2%. Her mortgage is with Chase.