There are a lot of different options available for changing or altering mortgages if your current mortgage is unaffordable. Loan modifications are common mortgage options that you may have heard of.
A streamlined loan modification is a particular type of loan modification. Streamlined home loan modifications are less common and less well-known than traditional loan modifications.
If you’re struggling to pay your mortgage, it may be a good idea to consult a loan modification attorney who can help you through your mortgage modification options. Joshua Denbeaux is an experienced New Jersey mortgage attorney.
Contact Denbeaux Law today to learn more about how we may be able to help you through the loan modification process.
What Is a Streamlined Loan Modification?
A streamlined loan modification is a type of loan modification that your lender offers. With this type of modification, you don’t have to submit a modification application like a traditional loan modification.
With a streamlined loan modification, you can get your loan modification faster. Streamlined modifications are designed to eliminate the hardship and financial paperwork related to traditional loan modifications and the time it takes to get approved.
Sometimes, with a streamlined loan modification, the modification’s Trial Payment Period (TPP) can be waived, allowing you to start with your modified loan immediately.
How to Qualify
Eligibility for streamlined loan modifications depends on your investor’s guidelines. Many government-backed investors offer options for streamlined modification reviews. There are Fannie Mae, Freddie Mac, U.S. Department of Agriculture (USDA), and Federal Housing Administration (FHA) streamline modifications.
Your investor may offer you a streamlined modification if you’re anywhere from 90 – 720 days delinquent on your mortgage and your mortgage is at least one year old.
Depending on your lender, there may also be loan-to-value ratio requirements.
Loans that have already been modified two or more times are typically ineligible. People who are viewed as strategic defaulters and are intentionally in default to get a streamlined modification are also ineligible.
Second homes and investment properties are usually eligible for streamlined loan modifications.
Things to Consider
Streamlined modifications are offered without an application or financial paperwork from you, which means no affordability calculation is done. You may be able to get a modification that’s better suited to your financial situation by going through the application process.
Just because you’re offered a streamlined loan modification doesn’t mean that it’s the best modification option for you. Reviewing the offer and your financial situation with an attorney before agreeing to it is a good idea. An attorney can help you analyze the situation and what options are best for you.
Contact a Loan Modification Attorney Today
Getting a loan modification can be a complicated and scary process because it involves your mortgage and homeownership. Streamlined loan modifications can seem appealing, but it’s still important to review them carefully.
Before agreeing to a loan modification, it’s a good idea to consult an attorney who can help advise you on your options.
Contact Joshua Denbeaux today to learn more about your loan modification options and how we may be able to help you.
