ericrmtpr
LoanSafe Member
Hello,
I apologize in advance if this is posted in the wrong section.
I just had a question about applying for a loan modification. I currently have a conventional loan serviced by US Bank with a decent amount of equity; I paid $75,000 as a down payment when buying the house, and currently owe about $251,000 on the mortgage while the house is valued at around $335,000. I bought this home in October of 2019.
Payments have recently become very tight due to a change in my situation and I was considering a modification to lower my monthly payments. I'm current on the loan as of now. My question was, will the banks generally approve modifications if there is positive equity in the home? I thought I had heard that sometimes if it is in the bank's best financial interest to foreclose rather than modify, they will deny the modification but I'm not sure if that is the case. Also, is it too early to apply for a loan modification since I've only had the mortgage for roughly 6 months? I wouldn't actually plan on applying so soon as I think I can keep it current for at least a few more months before things possibly get worse. My main concern however was whether or not there would be any likelihood in the bank approving my loan modification request since there is positive equity in the home.
Thanks for your time, any tips or suggestions would be greatly appreciated!
I apologize in advance if this is posted in the wrong section.
I just had a question about applying for a loan modification. I currently have a conventional loan serviced by US Bank with a decent amount of equity; I paid $75,000 as a down payment when buying the house, and currently owe about $251,000 on the mortgage while the house is valued at around $335,000. I bought this home in October of 2019.
Payments have recently become very tight due to a change in my situation and I was considering a modification to lower my monthly payments. I'm current on the loan as of now. My question was, will the banks generally approve modifications if there is positive equity in the home? I thought I had heard that sometimes if it is in the bank's best financial interest to foreclose rather than modify, they will deny the modification but I'm not sure if that is the case. Also, is it too early to apply for a loan modification since I've only had the mortgage for roughly 6 months? I wouldn't actually plan on applying so soon as I think I can keep it current for at least a few more months before things possibly get worse. My main concern however was whether or not there would be any likelihood in the bank approving my loan modification request since there is positive equity in the home.
Thanks for your time, any tips or suggestions would be greatly appreciated!