Frequently Asked Questions Loan Modification For Homeowners

 Workout agreement allows a borrower in default and their lender to renegotiate the terms of a loan. The purpose is to accommodate the defaulting borrower so that the lender has a more likely chance of recovering the loan principal and interest without foreclosure, making it mutually beneficial. 

 You have to be suffering a financial hardship 2. You have to be able to show that you can stay current on a modified payment schedule. 3. You have to show you cannot afford your current mortgage payments. 4. The property has to be your primary residence to qualify for a HAMP modification. 

 To apply for a modification, contact your servicer's loss mitigation department, sometimes called a "home retention" department, and ask for a loss mitigation application. You can find contact information on your monthly mortgage statement or the servicer's webpage. 

The loan modification process typically takes 30 to 90 days. 

 Within 30 days 

 Continue with loan modification 

 Ultimately, if your modification application is approved, the foreclosure will be permanently stopped so long as you keep up with the modified payments. 

 Your lender asset management department or loss mitigation services.