Feb 19, 2009 12:00 am US/Pacific
Help To Modify Home Loans
Question: My friend is 66 and with new health costs and fixed income, she is struggling to make ends meet. She would like to modify her home loan so she can stay where she's at. Her loan company won't allow any change and with decrease in equity, she probably won't qualify for another straight 30 yr. (she wanted to go to 40 yr if it would decrease monthly charge).
She heard or saw on TV about Helpmodifyloan.com, who say they may be able to help her, but brought website up and it isn't even finished. She really doesn't know whether to trust them if they do say they could redo her loan.
Is there any help for seniors, such as she, to modify their home loans so that they can stay in their homes?
- Sharon Mettler
Answer: I would suggest she not go through a loan modification company, but rather contact the lender herself. If she can show the lender that her financial situation has changed, they may be apt restructure her note to make the payments more manageable. It does not sound like she has the disposable income to spend on a mortgage modification company, especially if they end up not being able to help her at all. If possible, you may want to assist her in her interaction with the lender or loan servicer.
- David
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