mortgage

5 steps to a successful loan modification

Have realistic expectations
Have realistic expectations

Sometimes, borrowers have unrealistic expectations. That's a big mistake.

"We're looking for 'fair and reasonable' on both ends," Jones says. "We're looking for the servicer to be fair and reasonable, and we're looking for the homeowner to understand what their situation is, and expect something fair and reasonable."

In other words, counselors sometimes find themselves telling borrowers not to expect a generous handout.

Under the federal government's guidelines for the Home Affordable Modification Plan, a mortgage is presumed sustainable if the monthly payment is 31 percent of the monthly before-tax income.

Given his druthers, Jones would prefer that number to be 28 percent. But he says 31 percent is fair and reasonable.

advertisement

          Connect with us
advertisement
advertisement

Blog

Stephen Pounds

Home sales grow at fastest pace in 9 years

New home sales rose 12.4%, reaching a seasonally adjusted rate of 654,000 units. That beats a revised June figure of 582,000 and is 31.3% higher than the July 2015 rate of 498,000 units.  ... Read more

advertisement

Connect with us