The Loan Modification thread!

The Loan Modification thread!
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#1

Over the past several years since the recession I’ve been helping friends and family get loan modifications on their mortgages . Problem was there was really no place to get accurate info about the modification programs so I had to do much of it on my own . There was that LoanSafe forum but it was frequented with either scammers trying to charge for loan modification services and clueless newbies that offered no information.

In this thread my goal is to have a more informative and helpful place to get loan modification info and share data points on what worked for you ,


#2

Here’s the first data point :
Loan servicer Wells Fargo
Loan size before modification $800,000
Loan size after modification $500,000
Interest rate after mod 2% for 5 years , 3% years 6/7, 3.625% after that.

This home had a $300,000 principal forgiveness (down to current market value at time of modification ) as well as 4 years of missed payments forgiven . There were no tax consequences as modifications on primary residences do not count as taxable canceled debt income

The way to accomplish this mod was two fold - continuous reapplication (if you are denied, reapply!) and also working with loan counsellors like NACA which I’ll do a separate thread about