A loan modification can be a good option to modify your mortgage if you’re struggling to make your mortgage payments. Getting a modification allows you to work with your mortgage lender to adjust your mortgage payments to make your financial situation more manageable.
If you’ve already modified your loan in the past and are in a difficult financial situation, you may wonder if you’re eligible for another loan modification. Every lender has their own rules about loan modifications and their timelines.
An experienced loan modification attorney can help you determine if you may be eligible for another loan modification and help you through the application process. Contact Denbeaux & Denbeaux Law today to learn more about how we may be able to help you with your loan modification.
Can You Get A Second Loan Modification?
The number of loan modifications you are allowed throughout the entire life of your loan depends on your specific lender and what they allow you to do.
There is no legal limit on how often you can apply for a loan modification, but your lender might have a limit on how often they will consider or approve them. You can look into your lender guidelines before applying for a secondary loan modification to find out if they’re likely to consider and approve your application rather than just applying.
Different mortgage lenders have different loan modification guidelines. To determine if you might be eligible for a second loan modification, you must first find out who your lender is and what their policies are.
Second Loan Modification Process
The application process for getting a second loan modification is typically the same process you went through for your first loan modification application. A loan modification lawyer can help you with the loan modification application process to help you get a second loan modification.
Most government mortgages and public lenders allow up to three loan modifications. However, a private lender can restrict the number of loan modifications you can get approved for, so you’re not entitled to multiple modifications.
VA Loan Modification Restrictions
With a VA loan, you can’t get more than three loan modifications throughout the life of your loan. This means that no matter the timeline if you’ve already gotten three loan modifications, you won’t be eligible for another one.
Another major question about loan modifications is how often loan modifications get approved. With a VA loan, you won’t be able to get approved for a new loan modification if you’ve received a loan modification within the last three years.
VA loans also restrict how early you can get a loan modification. In order to get your first modification, you will need to have made a minimum of 12 payments towards your mortgage.
FHA Loan Modification Restrictions
FHA loans allow two to three loan modifications throughout the life of the loan. A typical FHA loan modification increases the length of your mortgage by 30-40 years.
An FHA loan is eligible for a loan modification every two years. It’s important to keep in mind that once you receive the maximum number of loan modifications, it doesn’t matter how long you wait; you won’t be eligible for another loan modification.
Fannie Mae and Freddie Mac Loan Modification Restrictions
Fannie Mae and Freddie Mac mortgages are limited to three loan modifications. These mortgages have different modification rules. If you’ve applied for and received a flex modification offer from your lender and then become delinquent within a certain time period, your lender doesn’t have to offer you another loan modification.
The Fannie Mae and Freddie Mac flex modification process requires trial payments. If you miss any of the trial payments, they won’t consider you for another modification within 12 months of the missed trial payment.
Contact A Loan Modification Attorney Today
Getting a loan modification can be difficult, even if you’ve done it before. Worrying about paying your mortgage while gathering the important information and qualifying documents for your application can be stressful.
An attorney can help you with the loan modification process by answering any questions you may have about your specific mortgage and lender. A loan modification attorney can also help walk you through any other options that may be available to you.
Contact Joshua Denbeaux today to learn more about your loan modification options and how we may be able to help you.
