Will the mortgage company possibly consider a Loan Modification?
rive_gauche79 asked:
My mother died in April, leaving a home with a mortgage. I am her only child, and have been unable to pay her mortgage; it has gone unpaid for four months. I just received rights as Administrator of her estate, and will now be able to communicate with the mortgage company regarding the home. I do not want to lose the home or sell it now. I would like a loan modification, so I can rent it out, and sell it later when the market has improved. Do mortgage companies grant loan modifications under these circumstances?
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My mother died in April, leaving a home with a mortgage. I am her only child, and have been unable to pay her mortgage; it has gone unpaid for four months. I just received rights as Administrator of her estate, and will now be able to communicate with the mortgage company regarding the home. I do not want to lose the home or sell it now. I would like a loan modification, so I can rent it out, and sell it later when the market has improved. Do mortgage companies grant loan modifications under these circumstances?
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Tags: April, Four Months, Mortgage Company
February 4th, 2009 at 10:01 am
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I doubt it, you are asking for a modification to improve your profit.
If you do not want to pay for it you are allowed to do a deed in lieu of foreclosure. It will not effect your credit at all, as it was not your loan in the first place.
February 7th, 2009 at 8:18 am
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You have numerous problems. Estate taxes must be paid on the value of the house. Where will you get that money. Next you need a mortgage in your own name.The homeowners insurance is also null and void upon your mom’s death. The mortgage company will not alter your mom’s agreement to suit you. They are most likely starting foreclosure proceedings. How about other outstanding bills? Real Estate taxes, school taxes? It would be best if you sat with someone that is familiar with estates and mortgage financing.
February 10th, 2009 at 5:05 am
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First of all, so sorry for your loss. Your mothers estate should be in probate, and the probate attorney will be able to inform you of all of the tax ramifications. You may have to actually move into the property in order to have the loan modified, but again, talk to an attorney.
February 12th, 2009 at 12:55 am
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Yes they do. However, it’s not guaranteed. You will have to show an ability to carry the mortgage payments after modification and that will require a fair amount of information.
The bank knows that foreclosure can be expensive and in this market a sale will take some time. It would be in their best interests to modify the mortgage and perhaps even share in the appreciation of the value of the property when it’s sold.
You can do the modification by yourself, but be prepared for it to take a lot of time and energy.
If you would like a better sense of the probability of getting a modification, I can collect information from you and submit it to a contact I have who does this professionally. They should be able to tell you with better accuracy as to whether or not you have a chance.
There are right ways and wrong ways to try and get a modification done and the information you send the mortgage company can make a difference between success and failure.
Good luck and let me know if I can be helpful.
February 13th, 2009 at 8:27 pm
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My condolescences on your loss.
It is unlikely that the lender will consider a loan modification on what they will consider an investment property. Since it has been 4 months since the payment has been made, it is probably only a month or two away from being foreclosed. So don’t waste time, get moving on this tomorrow.
February 15th, 2009 at 10:19 am
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How much of a modification would you need? MOre than likely you will have negative rental income anyways. I say you get it rented out just ot cover some sort of the mortgage. If you were to get a modificaiton it would not save you more than a few hundred dolllars per month. Rent it out or sell it. Just dont lose it. YOu need an appraisal done on the property to see how much it is worth in order to see how much equity is in it. Or contact a realtor and see what they say about the value. Just understand that a realtor could be off y as much as 30- 50K. Good luck and am sorry for your loss.