Mortgage Modifications Have Changed
In 2009 I spent a lot of time with clients trying to figure if they’d qualify for a mortgage modification. In 2010 it takes me about 5 minutes and is nearly 100% accurate. That’s because the banks, in their rush to streamline, have become so very standardized and predictable.
Standardized – The Making Homes Affordable Program (MHA) Guidelines have become the standards. Other programs are modeled after the MHA. None of the other programs are as rich and all are harder to get. But the guidelines have become universal.
I say predictable because the sheer numbers of applications has forced the banks to routinize everything – including erroneous rejections – to a point where it is pretty obvious to us veteran loan mod freaks.
You’ll get a mod if 1) you have a typical hardship (income down, expenses upduh!), 2) your loan qualifies (non-jumbo, made before 1/1/09), your ratios are right, 3) you live in the home, and you are in default. That’s not to say that landlords have no hope they just have less likelihood of approval and should have lowered expectations.
Just because you are qualified does not mean you will get a modification. In fact, thousands of qualified applicants get rejected each day. You will need to learn how to play a hugely bureaucratic, boobey-trapped game. And, like a lot of games, there are plenty of “gotchas” along the way.
Get advice from street-smart folks who have “been-there” and “done-that”. Follow the advice of the government or bank sponsored entities and you really can’t expect better results. Keep in mind that 96% of the applicants are getting rejected. Think about it. You need much better if you want to get to the front of the line and get some relief. Don’t be nave. Get advice from the trenches.
Rockwood offers tons of free advice. Looking for street-smart, insider tips on Mortgage Modification? Visit Rockwood’s site about DIY Loan Modification at Home Loan Modification This article, Mortgage Modifications Have Changed has free reprint rights.
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