Getting a lender to modify your mortgage to make it more affordable is a complicated process. A recent story in the LA Times explains the ins and outs of the $75 billion federal program to help struggling homeowners.
If you have been fantasizing about negotiating lower mortgage payments, the story may well disappoint. “Loan modifications, with rare exceptions, can be obtained only by borrowers who can show there’s a substantial chance their troubled mortgages can get back on track.”
To be eligible for a mortgage modification:
- The home must NOT be an investment property
- The unpaid loan balance has to be $729,750 or less
- Loan must have been made before Jan. 1, 2009
- You must be employed or have a new job lined up
Read the full story here.