I recently completed a loan modification for one of my clients. Many people wonder what kind of terms homeowners receive when their loan gets modified. I would like to share with you what they had prior to the modification, and what they received from their lender.
My clients had a 30 year loan that was fixed for two years at 9.5%, with a payment of $3745 per month. Like many homeowners, they were struggling to make the payments. They were unable to refinance due to the loss of equity from the general reduction in home prices in their neighborhood.
They asked me if there was anything they could do. I suggested trying for a loan modification. They asked me what terms they would get. I told them that I did not know. I told them that the modification would be based on their income and expenses.
After a long waiting period, my clients received a modification package in the mail from their lender. The lender changed the terms to a fixed rate for the remaining term of the loan. They reduced the rate to 6.875%. My clients' payment was reduced by $715 per month to $3030.
I think this modification turned out to be a win-win situation for both the lender and my clients. The lender is still getting a good interest rate. They also are avoiding having to go through another foreclosure.
My clients will be able to make their payments and keep the house they love!
Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me
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