X

Wondering if the income needed to buy a home in the top 50 metro areas is starting to decline? Hint: Not yet.

Wondering if the income needed to buy a home in the top 50 metro areas is starting to decline? Hint: Not yet.

How soon can I get another loan modification after my last one?

Q: How soon can I get another loan modification after my last one?

To a degree, it depends on the kind of modification plan you are in. Is it a private modification negotiated between you and your servicer or an old Home Affordable Modification Program (HAMP) or FHA modification?

loan-modificationIf you are in a private modification, you should contact your servicer when you suspect that you will be having trouble making payments -- the sooner the better. Negotiating a new modification may or may not be possible; please know that the servicer's role is to try to negotiate the most favorable outcome for the owner of the loan, and is not under any legal obligation to offer you new terms and conditions. However, they do need to review your situation and provide clear information about your rights and any appropriate timelines.

If you're in an old FHA-HAMP, that program is still active and you may be able to get a new modification after a trial payment plan period has been successfully completed. The old HAMP program (discontinued 12/31/2016) has been replaced by a new Flex Modification program. According to Fannie Mae's Flex Modification FAQ it is noted that:

Borrowers who previously modified their loan through HAMP (or any of the predecessor programs) are eligible for a Flex Modification IF:

a. the mortgage loan meets all of the eligibility requirements for the Flex Modification Program (including but not limited to the following):

   i. The mortgage loan must be delinquent or in imminent default

   ii. The mortgage loan must not have been modified three or more times, regardless of the loan modification program

   iii. The mortgage loan must not have received a Flex Modification and become 60 days or more delinquent within 12 months of the modification effective date without being reinstated.

   iv. The borrower must not have failed a Flex Modification Trial Period Plan within 12 months of being evaluated for eligibility for another Flex Modification.

For details about the program, read Flex Modification: An outline of HAMP's replacement.

To get started, you'll want to contact the servicer of your loan. Look on your mortgage statement for contact phone numbers or website locations; some may have special numbers or site locations for borrowers having trouble with their loans. Talk to them as soon as you can and see what relief they might be able to offer you.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Please enter a question.
Please enter name.
Please enter email.
Captcha code invalid
Q: Should we pay off our mortgage?
OCT 04, 2022
A:

Whether you should pay off your mortgage or not sounds like a simple problem with an easy answer... but it's not.

Read More
Q: How are mortgage interest rates determined?
AUG 18, 2022
A:

Mortgage rates fluctuate from day to day, depending on a number of factors related to the economy and to choices made by investors. While some mortgage money comes from deposits held by banks and credit unions, most of the funds for borrowers come from investors in capital markets.

Read More
Q: Will today's stock market influence tomorrow's mortgage rates?
AUG 16, 2022
A:

Mortgage rates are influenced by a variety of factors, rather than moving in lockstep with any one economic indicator. The stock market rises and falls for a wide variety of reasons, including global, economic and political issues, but as a broad rule of thumb, a rising stock market indicates optimism among investors about the economy.

Read More
Add to Homescreen?
X
X
Install this web app on your phone :tap and then Add to homescreen