Mr Mortgage on Mortgage Modifications: You May Qualify!

In the past couple of months, however, many big lenders jumped to the same page and are offering unheard of deals. This is likely because they have so much REO coming back they can’t handle any more. They have finally realized that it is cheaper to do an aggressive loan modification and keep people in their homes paying their mortgage like a good borrower than foreclosing.

Time may be of the essence. Why I think it is important to look at modifying now is because at the present time, you do not have to share your future appreciation with anyone. After a modification, you get a fresh start. However, if this new $300 billion bailout goes through you may have to share your future appreciation with the Government and/or bank after you are given a modification.

If you live in CA, NV, AZ, FL or any other ‘bubble state’ and are in a negative equity position, you stand a great chance of being modified. Also, if you have an exotic loan like a Pay Option ARM, 2/28, 3/27, 5/1 ARM or high LTV 2ndmortgage that is now underwater, you stand a great chance. In bubble states, many people can qualify for modifications simply due to how far the value of their home has fallen. Very few know this.