Mortgage Modification

[12HRS]

What are you going to do with the $1,378?  Deploy it safe smart.

tuition committees are coming knocking.

[zagguru]

anyone able to confirm if there is a negative effect on credit reporting? WF rep claims there is and will be a with a mod

[randomjay]

anyone able to confirm if there is a negative effect on credit reporting? WF rep claims there is and will be a with a mod

Your credit report will show that loan had a modification, but won’t effect the score much. I’ve seen many recent reports with loan mods and none had major score impact.

[zagguru]

Your credit report will show that loan had a modification, but won’t effect the score much. I’ve seen many recent reports with loan mods and none had major score impact.

would having that on your report impact future lending?

[ExGingi]

Your credit report will show that loan had a modification, but won’t effect the score much. I’ve seen many recent reports with loan mods and none had major score impact.

I was told by a mortgage broker once that mortgage lenders won't give you a new mortgage within 24 months of a modification.

[tov hashem]

I was told by a mortgage broker once that mortgage lenders won't give you a new mortgage within 24 months of a modification.

I wouldn’t believe a mortgage broker on this mod is not good for their business. I wonder if anyone with experience could chime in?

[AsherO]

I wouldn’t believe a mortgage broker on this mod is not good for their business. I wonder if anyone with experience could chime in?

AFAIK mortgage brokers get paid for originating a loan and get no residuals for the loan being paid on time or not refinanced. If you got the mortgage elsewhere and they can get you a refi (and earn a commission on that) then they wouldn’t turn down the opportunity. It’s possible that a mod makes it refi more complicated in which case a broker wouldn’t bother with it as it isn’t worth their time (and/or is less likely to close (brokers typically don’t get paid anything for loans they work on that don’t close).

[tov hashem]

They would advise you against MOD because they want people should do REFI

[ExGingi]

They would advise you against MOD because they want people should do REFI

I am talking from experience calling my mortgage broker AFTER a modification. Though my memory might not serve me right and it might be 12 months.

And believe it or not, there are real professionals out there that will give you an honest response (usually found in the more mature cohort).

[tov hashem]

I am talking from experience calling my mortgage broker AFTER a modification. Though my memory might not serve me right and it might be 12 months.

also COVID might change the rules since a lot of people applied and got easily approved so not really a reason for bad relationships with the bank.

[ExGingi]

also COVID might change the rules since a lot of people applied and got easily approved so not really a reason for bad relationships with the bank.

Indeed. IDK what happens now. I am just reporting what happened in the past (Obama era loan modifications).

[zagguru]

any recent DPs on modifications and how they are reported to your credit?

[zagguru]

any recent DPs on modifications and how they are reported to your credit?

Closed on a loan with TD Bank in November at 2.5% 30 year fixed. Was offered a modification (following the steps mentioned in this thread by others) to extend for 40 years keeping the same rate. No questions asked. Did not ask for any documents either. Seems like a no brainer to me.

[zagguru]

Closed on a loan with TD Bank in November at 2.5% 30 year fixed. Was offered a modification (following the steps mentioned in this thread by others) to extend for 40 years keeping the same rate. No questions asked. Did not ask for any documents either. Seems like a no brainer to me.

Any reason not to accept this offer?

[ExGingi]

Any reason not to accept this offer?

no brainer

Or to rephrase that: If you can find a bank that will offer 2.5% fixed rate 40 year mortgages today, the line to sign up would be longer than all the lines at all airports across the globe combined!

[dovy2]

Closed on a loan with TD Bank in November at 2.5% 30 year fixed. Was offered a modification (following the steps mentioned in this thread by others) to extend for 40 years keeping the same rate. No questions asked. Did not ask for any documents either. Seems like a no brainer to me.

What steps? Just called TD and asked?

[qwerty123]

anyone try this with lakeland bank?

[zagguru]

Closed on a loan with TD Bank in November at 2.5% 30 year fixed. Was offered a modification (following the steps mentioned in this thread by others) to extend for 40 years keeping the same rate. No questions asked. Did not ask for any documents either. Seems like a no brainer to me.

Just to update everyone. The modification has been completed, was switched from 30 to 40 years, lowering my monthly payment by about $800. I set up an automatic withdrawal for Schwab Robo Investments for that amount of $800 each month.

[dm123]

Thanks @ExGingi for pointing this out!

Just called our mortgage servicer PennyMac and asked for a loan mod due to covid hardship - inflation etc. Rep said needed to go into forebearance first, so I figured if they're offering 3 months forebearance why not take it and hope to get a mod extending later?

current term is: 2.375% 20 year mortgage.

[gmd]

Just to update everyone. The modification has been completed, was switched from 30 to 40 years, lowering my monthly payment by about $800. I set up an automatic withdrawal for Schwab Robo Investments for that amount of $800 each month.

Hence the need for this thread https://forums.dansdeals.com/index.php?topic=129886.0