Loan Modification in New Hampshire
What is a loan modification?
A loan modification is a part of a loss mitigation process, typically through a mortgage company or a division, that mitigates the bank’s loss and restructures the payments and interest rate for the borrower.
However, during this loss mitigation process, it’s only sometimes guaranteed that the homeowner will qualify for a loan modification. A loan modification is the change of terms to your original mortgage loan, often changing the monthly payments, interest rate, and duration.
How do you file for a loan modification in New Hampshire?
First, you need to contact your current lender. Then they’ll have you fill out a loan modification application in its entirety. Be sure there is not any missing information. After you have completed this, submit everything back to the lender. You’ll also need to send in information regarding your taxes, employment, and income.
Typically when it gets to the lender, they will process it as long as it is completed in its entirety. Depending on your lender, it takes anywhere from 30 to 90 days to get a response back for a loan modification approval or denial. The lender should tell you once they’ve come to a decision. However, this is not always the case, and you won’t know when that decision will come.
During this process, sometimes it’s an automatic postponement of a foreclosure date or an auction date on the property, but that’s not always the situation because every lender is different.
What happens if it’s approved?
Typically you will get an approval letter, email, or verbal notification over the phone saying that you were approved. The lender will briefly go over what your new interest rate is and what the new payments are.
Because a new loan has originated with new terms, the auction will be released.
When there is approval, lenders often initiate a trial loan modification payment plan. This is a trial period of 90 days to see if you can make the payments. Once you complete all 3 months of payments, you should qualify for a full loan modification.
If you are qualified for the loan modification, the reinstatement amount, interest, late fees, and attorneys’ fees will be put back into the loan.
What happens if it’s denied?
The lender will typically contact you and inform you that the loan modification has been denied. And if it’s denied in a pre-foreclosure situation, the auction date will often remain in place.
How Project Relief can help!
Whether you have applied for a loan modification, have been denied, or are unsure how to begin the loan modification process – Project Relief can help you through any stage! We have specialists that can guide you through any of these processes.
We understand that dealing with your lender can be overwhelming and quite difficult, especially when it feels like they are not on your side. Project Relief is in your corner to help you fight the good fight of saving your home! If you have already been denied, we have options for you to move past the foreclosure process with a clean credit report. Contact us today so we can help you take the next best step.
