Comments on: Understanding the Short Refi http://www.keepmyhouse.com/2009/02/24/understanding-the-short-refi/ All about loan modifications and more Fri, 15 May 2009 10:06:25 +0000 http://wordpress.org/?v=2.6.5 By: Larry Rubinoff http://www.keepmyhouse.com/2009/02/24/understanding-the-short-refi/#comment-251 Larry Rubinoff Thu, 26 Feb 2009 23:08:43 +0000 http://www.keepmyhouse.com/?p=297#comment-251 "You should be prepared to encounter some resistance because you’re not delinquent. Lenders have been slow to warm up to the concept of modifying payments before the borrower has missed payments." This comment is very real. I have clients who call me when they have tried to modify their loans. Many are told that they need to be 60 to 90 days past due before they can do anything...so many people stop making their payments in hopes of accomplishing their modificaitons then wind up in foreclosure. You must caution your readers to not intentionally stop making payments to qualify for a modification or a short refi. I do see, however, that there are some small efforts being made by certain loan servicing companies as a result of the new legislation and mostly - I believe - due to the increased media exposure on this issue. “You should be prepared to encounter some resistance because you’re not delinquent. Lenders have been slow to warm up to the concept of modifying payments before the borrower has missed payments.”

This comment is very real. I have clients who call me when they have tried to modify their loans. Many are told that they need to be 60 to 90 days past due before they can do anything…so many people stop making their payments in hopes of accomplishing their modificaitons then wind up in foreclosure.

You must caution your readers to not intentionally stop making payments to qualify for a modification or a short refi.

I do see, however, that there are some small efforts being made by certain loan servicing companies as a result of the new legislation and mostly - I believe - due to the increased media exposure on this issue.

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