Do you qualify for a hardship re modification loan if the current loan is already at a fixed rate?

Answer 1

Yes you do. Anyone can get their loan modified because of a hardship. You have to contact your lender and fill out a hardship package, which usually contains:

Hardship Letter (detailed information about why you are going through rough financial times)

Expense Sheet (list of every expense you have each month cars, gas, heat, electric, food, toiltries, cell phones etc.) they want to know every item.

1 Month of current paystubs

They will review all of this and then contact you in about 4-14 weeks and let you know what kind of modification they will give you. Results vary from lender to lender. But with the current bill that Obama passed they have to modify everyones rate by law now.

But with this said the lenders still don't care and are constantly telling people that they do not fit into guidelines or they are just not a candidate. These are all untrue and you probably just received a rep that doesnt know how to do there job. Also you may just get ignored and fill out paper work and never hear anything because most of the lenders are so backed up.

The best thing to do is contact an attorney or loan modifiation company to assist you in the process because alot of the lenders do ignore or they are just looking out for their interests and not yours. They may get back to you but the banks isn't going to give you the deal that is going to be best for you. They are going to give you the deal that is going to make them loose the least amount of money. This is why having and attorney or loan mod company is in your interest. Because you have someone else to negotioate the terms of your loan. They have experience and know how to speak to the banks to get you a good deal. Not to mention they are the ones that are spending the countless hours on the phone with the lenders while you can relax.

I know this from experience as I have been trying to get a loan mod done for 2 years and my lender was unwilling to help or care or even call back. I have contact department after department and supervisor after supervisor. You usually cant even get a person from the company that can say your name let alone get your modification done.

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Another View by Gail Simmons:

With the banks/servicers being overwhelmed with loan mod applications, the homeowners that are going to the "front of the line" will not only have to demonstrate a true hardship but will also need to be in default at least 30-60 days. And if your loan is already fixed at 6% or below, your file won't be a priority to the bank.

If you decide to submit a loan modification request, you should know that you can do it yourself with the right tools and save yourself a lot of money and time.