Loan Modifications: Do they work? It’s a question I get from time to time, and I thought I’d share this quick little post…
A Facebook “Friend” was a short sale negotiator for Bank of America. He was with BofA for 3.5 years, but got laid off in December. He’s remained current on his BofA mortgage payments, but had hoped to reduce his interest rate. In July 2013, he applied for a loan modification, he continued the process after he became unemployed (nearly 6 months after his application was filed).
He is surprised by the results that he learned of today:
“Got the final decision. I do not qualify because I am unemployed…”
This was someone you would think was “in the know” about the process and what the qualifications would be; and also someone that would understand the inner workings of BofA. And he is surprised.
Just a tidbit I thought I’d share for everyone else out there trying to navigate these types of issues.
The up side… if there is one… is that here in NoVa fewer and fewer people find they are currently upside down. If you’re wondering if you might have positive equity at this point… please reach out to me. I am happy to run some basic comps and try to give you a rough estimate so you can explore the options either to sell or refinance. Very few loan modifications actually are approved. Personally, I wouldn’t waste my time and effort.