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Loan Modification FAQ

Why Would a Bank Be Willing to Modify My Loan?

Absent unique circumstances, a lender will choose to modify your loan if it can made more money on the modification than it can make from foreclosing on your home. Because the loan is paid over time and a foreclosure provides proceeds now, the lender must perform a net present value (NPV) analysis that factors in the time value of money. When you submit a loan modification with Vannova Legal, we perform an NPV test to help you determine your chances of qualification for a loan modification.

Can I Qualify for a Loan Modification with Bad Credit?

Yes. Special loan modification programs such as the Home Affordable Modification Program (HAMP) provide incentives to the lender to modify your loan even if you would not qualify for a new loan. Other loan modification programs that are not dependent on your credit score include the Streamlined Modification Initiative (for loans backed by Fannie Mae and Freddie Mac), IndyMac Federal Bank Loan Modification Program, Federal Housing Finance Agency Loan Modification Program, plus many other loan programs provided by major lenders such as Citigroup, JP Morgan Chase, Bank of America and Wells Fargo.

Can I Qualify for a Loan Modification If I’m Current on My Mortgage Payments?

Yes, but many of the federally sponsored programs, such as HAMP, require that you be delinquent. So while you may be eligible for some independent programs, your chances of a successful loan modification are lower since you will qualify for a smaller number of programs. If it is important to you to maintain good credit, let your attorney know in your consultation and see if a Loan Modification is possible for you.

Can I Qualify for a Loan Modification If I Have Received a Foreclosure Notice?

Yes, but the closer you are to a foreclosure sale date the less options you may have. The sooner you take action the better. Foreclosure is the worst option under almost any situation. Even if your plan is to wait until the last minute to take alternative action, be sure to consult with your foreclosure defense attorney ahead of time so you can be prepared for alternatives if your loan modification is not approved.

Can I Qualify for a Loan Modification on my Vacation Home or Investment Property?

Yes, but it depends on the lender and you have less programs available to you. Talk with your Loan Modification Attorney about the specifics of your vacation or investment property.

How Long Does a Loan Modification Typically Take?

The Loan Modification process typically takes anywhere from 30-90 days for each submission, depending on how efficiently the modification was prepared. However, it is routine for a modification to be denied and resubmitted multiple times extending the negotiation time considerably, typically between four to six months.

What Are the Requirements for a Loan Modificaition?

Each loan modification program has unique qualification criteria. To further complicate matters, loan modification programs and criteria are constantly changing. There is no criteria that fits every program. When you consult with a Vannova Legal loan modification attorney, we will help you understand the various program requirements.

Are There Other Ways to Save my Home From Foreclosure?

Yes. There are many ways to stop foreclosure. For example, a short sale or a Chapter 13 or Chapter 11 Bankruptcy may stop foreclosure. A Vannova Legal attorney will review all of your options during your free consultation and help you decide the best foreclosure defense options available to you.

Can a Lender Include Late Charges in the Loan Modificaiton?

Per the U.S. Department of Housing and Urban development Mortgagee Letter 2008-21, late charges should be waived because the goal in providing a loan modification is to bring the delinquent mortgage current and give the borrower a fresh start.

Can Vannova Legal Stop Foreclosure?

Almost always, yes. The sooner you contact us the more options will be available to stop foreclosure. Call us today to set up your free consultation at 1-877-506-5190.

Can My Bank Require an Interior Inspection of My Home?

Yes, your lender can conduct a physical inspection to determine the condition of your home and calculate the estimated value.

Does a Loan Modification Stop Foreclosure?

Yes, a loan modification will typically stop foreclosure, at least temporarily.

Can I Do a Loan Modification Myself?

Yes, but statistics show that attorney supported Loan Modification are approved at a higher rate than Borrower approved Loan Modifications.

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