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My mother did a modification recently and needs to know if she'll be able to get either a secured loan/HELOC next year.

by nurit.folkes478 from Atlanta, Georgia. May 27th 2014 Reply


This is a correction. My mother is not in Atlanta she's in Florida.

May 27th 2014
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John Moran (SimplifyMortgage)
#7 ranked lender in Arizona - 663 contributions

Sounds like you are talking about a second loan. HELOCs and HELOANs have their own set of rules depending on the lender providing them. You'll need to consult some lenders to see what their rules are, but you should also review the modification to see if that is ok by the terms of the mod. If a principal reduction was part of the modification, she may not be able to take money out of the home.

May 27th 2014
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Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions

This will be difficult, if it is possible at all.

May 27th 2014
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Hans Bruhner (hans@asktheloanman.com)
#206 ranked lender in California - 18 contributions

Many lenders look at a loan modification the same way they look at a short sale. It actually makes sense, in both situations the lender has agreed to take less. In a modification they have agreed to take a lower interest rate or less principal or both.

May 27th 2014
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Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions

You will need to contact a local bank to see what their guidelines are for their Heloc programs, it will vary from lender to lender. It will also depend on the circumstances and terms of modification as well.

May 27th 2014
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#58 ranked lender in Georgia - 807 contributions

I guess if the value went up and a local bank was comfortable with the LTV your mom's credit qualifications...there is no definite answer ...good luck

May 27th 2014
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Jason Vondrak (jvondrak)
#220 ranked lender in California - 1,741 contributions

It will likely be difficult for your mother to obtain a HELOC after completing a loan modification, since the lender already agreed to modify the loan terms that were originally agreed to and is getting less in return.

May 27th 2014
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