Mortgage Modifications are Working!

You must be upside down in equity and you must be able to document a financial hardship. That's it! Most of the successful transactions I've worked on yield a 20% to 30% reduction in the owners payments.

Have you looked into this and if so what has been you outcome?

Edited: 06/26/2010 at 07:23AM

Matthew Gil

Real Estate Investor

342 posts
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Feb 25 '09, 05:36 AM

I'd be interested know the tactics that can be used to negotiate a successful modification.

Edited: 06/26/2010 at 07:23AM

James Hiddle

Real Estate Investor · Altus, Oklahoma

2,567 posts
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Feb 25 '09, 06:06 AM

Originally posted by Matthew Gil

I'd be interested know the tactics that can be used to negotiate a successful modification.

x2 I thought about doing loan mods vs short sales because it seems more ethical.

Edited: 06/26/2010 at 07:23AM

Jason Wheeler

Private Money Lender · Pleasant Hill, California

414 posts
4 awards
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Feb 25 '09, 06:09 AM

The file is exactly the same as a short sale package. However banks are desperate to avoid taking on more foreclosures. Most modifications take 1 to 3 months and help the client save their home. And with the savings most clients re coup the cost of the transaction within 3 to 4 months.

Id be happy to chat with anyone that would like to learn more.

Edited: 06/26/2010 at 07:23AM

James Hiddle

Real Estate Investor · Altus, Oklahoma

2,567 posts
7 awards
56 influence

Feb 25 '09, 07:47 AM

Originally posted by Jason Wheeler

The file is exactly the same as a short sale package. However banks are desperate to avoid taking on more foreclosures. Most modifications take 1 to 3 months and help the client save their home. And with the savings most clients re coup the cost of the transaction within 3 to 4 months.

Id be happy to chat with anyone that would like to learn more.

I would like to learn more.

Edited: 06/26/2010 at 07:23AM

Matthew Gil

Real Estate Investor

342 posts
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Feb 25 '09, 09:16 AM

My question is, do you have to be behind to get a modification? I have friends and family that are the brink of going over the cliff, yet they still barely manage to pay their mortgage every month.

Edited: 06/26/2010 at 07:23AM

Jason Wheeler

Private Money Lender · Pleasant Hill, California

414 posts
4 awards
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Feb 25 '09, 09:20 PM

Originally posted by Matthew Gil

My question is, do you have to be behind to get a modification? I have friends and family that are the brink of going over the cliff, yet they still barely manage to pay their mortgage every month.

This is a common misconception. It is easier to get the modification done if you have not yet fallen behind but can document a legit hardship to come within the next few months.

Edited: 06/26/2010 at 07:24AM

Nick J.

SFR Investor · Scottsdale, Arizona

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Feb 25 '09, 10:25 PM

Jason, I just wanted to add to your comment.
This is from BankUnited's website, for their shortsale/loan mod requirements:

For modifications: To be considered for a modification, your
loan must be current. Please contact our Modification Department
by sending your request to mhotbox@bankunited.com

that link is http://www.bankunited.com/documents/ShortSalePackage_Final.pdf about 6 pages down

I agree with you as far as not having to be behind to do a modification. According to BankUnited you must be current, which why in some cases where the home owners only other option is Short sale. I'm glad to see your having some success helping people.

Edited: 06/26/2010 at 07:24AM

Jason Wheeler

Private Money Lender · Pleasant Hill, California

414 posts
4 awards
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Feb 26 '09, 06:27 AM

The problem with working directly with the bank is that they really are not in the business to help you. They want your money. If you have a professional that does not work for the bank working on your behalf you have a better chance than working directly with the bank.

90% of the people that try and do it themselves give up because it is so frustrating and time consuming to do it on your own.

Edited: 06/26/2010 at 07:24AM

Harrison Painter

· Indianapolis, Indiana

762 posts
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Feb 26 '09, 06:45 AM

This would be a great topic to have a weekly, or monthly, chat about.....

Your thoughts?

Edited: 06/26/2010 at 07:24AM

Jason Wheeler

Private Money Lender · Pleasant Hill, California

414 posts
4 awards
50 influence

Feb 26 '09, 06:48 AM

Originally posted by Harrison Painter

This would be a great topic to have a weekly, or monthly, chat about.....

Your thoughts?

Since the industry is changing so rapidly every day, I don't see why not. I'm happy to chat with anyone on this topic.

Edited: 06/26/2010 at 07:24AM

Billy Campana

Real Estate Investor · Los Angelese, California

8 posts
3 awards
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Aug 07 '09, 10:29 AM

What's the status of loan mods today? I hear so many different things from reputable people (at least I think they are), but so many things conflict.

Do loans need to be up to date or not? Which way is better?

It seems that somebody knows somebody that got a loan mod and life is good but I can never get specifics of the deal.

Can anybody enlighten me on the subject? I'm not in need of any modding, but I have people ask about it and I can't give a straight answer.

Edited: 06/26/2010 at 09:16AM