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Lender Modification

How does this program help me?

If you are having problems making your payments contact your lender as soon as possible! The options for your lender are many. They could agree to add past due payments to the end of your loan. They could agree to a forbearance where you are allowed to skip a few payments, or pay a lower payment, for a few months. They could lower your interest rate, extend the term of your loan back out to 30 years (or even 40), convert your adjustable rate mortgage to a fixed rate and, in rare cases, even lower your principle amount. Remember, they would prefer to avoid a foreclosure.

Who should I contact?

Only your servicer can do this program. Your servicer is the company you mail your monthly mortgage payments to. Get out your monthly mortgage statement and call the customer service number on it. Let them know you want to apply for a loan modification. It is often their "loss mitigation" department that handles these types of programs so they might transfer your call there.

What should I expect?

You will need to be patient and persistent. You will need to show the lender that if they agree to help you, you will be able to make your new payment. The last thing they want is to procrastinate the inevitable. If you look like you will eventually foreclose, they would prefer to get over with sooner, rather than later. Be sure to check out our resources section for a list of personal financial documents to get together.