Loan Modification question

[acc23]

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

Do you have to be upside down in a property to do a loan modification?

[seniorjudge]

Originally Posted by acc23

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

Do you have to be upside down in a property to do a loan modification?

http://forum.freeadvice.com/mortgages-refinancing-foreclosure-107/need-real-estate-advice-439964.html

Keep all your questions on this subject in the first thread you started.

[Kevin Levonas]

No, you do not have to be upside down on your property at all. However if you have a lot of equity the banks might consider other options before a loan modification.

In short, they do consider your property's value but again you do not have to be upside down.

[acc23]

Originally Posted by Kevin Levonas

No, you do not have to be upside down on your property at all. However if you have a lot of equity the banks might consider other options before a loan modification.

In short, they do consider your property\'s value but again you do not have to be upside down.

Thanks for the help. I was concerned that with her having some equity in the house that the bank would rather foreclose and take it than do a loan modification.

[BriantheBanker]

I know of two people who 1. had been always late & behind and always pre-foreclosure- then catch-up...
2. second guy always on time with some equity (~10k not much... on a $100k house)
Same mortgage Servicer. Modified each of their payments. You may be able to get modified terms, without modifying the mortgage.
Arrangments are being made more than ever. [don't mind typo's ]
Don't forget to use a common sense approach... Do you have more than 15% equity (based on a true current value. getting a BPO: A Realestate 'brokers price oppinion' will help.) Call local realtor/ Broker.
If the bank thinks they can quickly and easily sell your house; getting more than the balance/ amount of your mortgage, you may have a tough time getting arrangments...
Additionally, the bank won't talk to you about modifications or arrangements while your account is in good standing (but as '2. Second guy' proves this is NOT always the case.
DON'T GO LATE on payments in an attempt to negotiate if you're not currently behind (have been on time for last 6-12 months.)
good luck!
B