Loan modification

[lsk]

What is the name of your state (only U.S. law)? mo

Trying to get approved for a loan modification. Was wondering if anyone has been refused? Wondering what would happen next? Mortage co. says they would try to work out something else but would not say.

 

[FlyingRon]

Modification is purely at the discretion of the lender. If they choose not to come to new terms they will still foreclose if you are in default. In fact, the foreclosure process may not be affected by the pending modification negotiations. Lots of people get foreclosed upon who were pursuing modification.

 

[nextwife]

The lender is only obligated to comply with the terms of the EXISTING agreement. They have no obligation to change any terms of the agreement you entered into when they gave you the funds.

 

[lsk]

I understand that the bank doesn't have to change the terms. I have asked them if they have started to foreclose on my house and the asnswer was no. I have been in the trial peroid as they call it for the modifcation and I am up to date with the mortage. My loan is a fanny may loan..I quess what I was wanting to know if anybody has been denied a modifcation and what happened next. If foreclosure is the only option or if they would offer to do a short sale. My house is not upside down and there is equity. I do have the home listed and would sell tomorrow if I had an offer. Believe me I never thought we would be in this position. Husban lost his job and took another one for half the pay. I am working two jobs also. So not looking for a hand out just some help.