Mods For Everyone

The saying goes, ‘You can please all of the people some of the time, and some of the people all the time, but you can’t please all of the people, all of the time.’ Sage wisdom from a simpler time, that still rings true today. This is also true with loan modifications.

Not all loans are alike, nor are all needs. Everyone has an idea of what they want, and it’s usually based on what they heard their neighbor up the street got. Well, it doesn’t really work that way most of the time.

When a lender puts together a Mod package, there are several things they considered to get to that point. What can the homeowner afford? What type of loan is this? What is the hardship, and has it been resolved? What are the current market conditions in the homeowner’s direct geographic area? Do they own other properties? All of these and more come into play when trying to figure out if and how to modify a loan, not least of which is the ability to re-pay at the modified payment.

The mod that Mr Jones got will not be the same mod that Mr Smith gets, nor will Mr Smith’s be identical to Mrs Ling’s, etc. The differences can be profound, up to and including, not getting a mod at all. Because some loans just will not qualify, no matter what your neighbors got for theirs.

My recommendation, if you get a mod, even if it’s not as good as you expected, if the payment is affordable, then you should do it. If you are still not happy with it 6 months to a year from now, re-apply! Most lenders will consider a loan for modification once or twice annually if necessary. In the meantime, you are at least making a more affordable payment and not ruining your credit with mortgage delinquency.