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Home Loan Modifications - High Number of Enquiries but Low Success Rate

In present day scenario where falling market value of property make many homeowners owe more than the current value of their home the number of inquiries regarding various loan modification and refinancing are reaching all time highs.

Owner of a real estate company Mr. Matt further elaborated and confirmed the above mentioned statement saying that his company has been receiving hundreds of calls weekly from individuals who want to know more about loan modifications as well as those of whom who wish to make modifications to their existing loans. He continued that on an average out of every 100 client request, his company only completed 10. He gives the reason that his company is always honest and truthful to clients about basic requirements needed for such loan modifications. Mr. Matt added that many homeowners do not qualify for loan modification because of their monthly income, either too high or too low.

He continued that the criteria for homeowners to qualify for loan modification is pretty strict and elaborated that if a person is earning too much then it appears to the estate agents that the person can afford to make the payments. On the contrary if a person is earning too little then the real estate companies tend to reject the application giving the reason to be that he would not be able to make payments due to his limited income.

Mr. Matt thus concludes that the loan modifications are applicable only to those owners who wish to stay in their houses for long term and are comfortable with the payment option.

Many homeowners who are seeking loan modifications these days are eventually ending up defaulting anyway because banks are not willing to write down principle. Hence in the present scenario those homeowners who were not able to afford the previous payments won’t be able to afford the modified loan either due to the banks various stipulations and regulations.