LOAN MODIFICATION

[H HARDIN]

My home is valued at $597,534. My Interest bearing principal is $716,718.75 as of May 1, 2020. $119,184.75 under water. How under water must I be before I can get a loan modification? My present interest rate is 3%, my monthly payment is $3,711.45. I am self-employed and have been for about 20 years. I am current on mortgage payment, had a loan mod in 2016.

 

[just_me]

Usually modifications are based on hardship programs and risk of foreclosure. Doubtful they would automatically reduce to value under a modification. The only other thing that comes to mind is a short-refinance. I can't see this being easy, plus customer service is hard to come by right now. COVID19 Pandemic forebearances and other gov programs are under development.

Also, a 2016 loan mod may very well contain a (scheduled) 5 year principal reduction for performance (which is 2021). I would try to obtain this benefit. HAMP mods contain these performance reductions.

Maybe others will chime in.