Can I get qualified for a loan if I had a recent modification on an existing property that I plan on selling? Does a modification show negatively to a new lender?
John Moran (SimplifyMortgage)
#7 ranked lender in Arizona - 663 contributions
It depends on the loan program, who initiated the modification and what type of modification it was (principal reduction, interest rate reduction, etc.). Probably best to discuss you situation directly with a local mortgage professional.
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
As a general rule, modifications are viewed negatively. Depending on the circumstances you may be eligible. If he lender required you to go late on your mortgage before helping you, or if they waived/wrote-off any earned interest, then it is highly doubtful any lender will approve you for a new loan until at least two years have passed. Some will require longer. If you were never late on the loan and still managed to get the modification, then it is much more likely you can get approved for a new loan. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California, Arizona and Washington ~ www.LoansA2z.com 888-889-9950
Ok so to give more detail. I have a first and second mortgage that fell behind due to a lost of a job a few years back. These were mortgages that were obtained in 2007 during the time they were lending subprime mortgages to everyone!! So the interest rate was very high and the monthly payments were really not affordable to behin with. So I have a history of no payments on both of them. The first mortgage was modified finally in April 2013. I did a repayment plan for about 8 months then my payments were lowered. I have paid a year successfully with no lates on that one. They lowered the interest rate to 2.4% and forgave some principle (I think) However it is showing at a 42 year loan now instead of 30 so maybe they found a way to collect their money in interest. We are just now refinancing the second one that will start reporting in July. They also lowered the interest rate, but to only 5% and forgave the past due balance, Was on a 3 month trial with the second one.We are wanting to sell the home next year, because homes in our area are selling like hotcakes. They told us that we would be allowed to sell our home at anytime no problem. So we are wanting to apply for a new loan to get a larger house, but are worried that the recent modifications will hender us from obtaining one next year.Do you think they will turn a "blind eye" if I have a large downpayment + land equity and approve us for a new loan. My financial situation has significantly changed over the years and I am able to afford a larger home. Cars are paid for. No credit card debt! Next year the only debt I will have is the existing mortgages.Do I have a chance?
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
The more detail really doesn't help your cause. Based on the fact that you went seriously delinquent before the modification, it is doubtful that you will find anyone other than a hard money lender that will consider a new loan. Hard money is going to be very pricey and require a substantial down payment. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California, Arizona and Washington ~ www.LoansA2z.com 888-889-9950
Sean Young (SeanYoung)
#1 ranked lender in Colorado - 1,112 contributions
Will depend on how your credit looks now and you will need at least a 12 month history clean mortgage history and maybe even 24 months depending on how many months late you were prior. Meaning if your credit report showed you with 60 day or 90 or greater late payments. I would talk with a local lender and have them review your credit with you to see exactly what your current options are. Best wishes, Sean
Nathan Kessler (nathan.kessler@guaranteedrate.com)
#44 ranked lender in Nevada - 81 contributions
I can answer all of your questions quickly with a short phone call. All depending upon your situation, we may be able to put together a loan program for you. I look forward to hearing from you. Nathan Kessler 702-522-6745 City First Mortgage Services
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