Archive for May 6th, 2010

Getting Refinanced After Home Modification

Can I get refinanced after home modification? You may have had your mortgage loan modified through a negotiation, or through Obama’s making home affordable program, and may be wondering if you would be able to get refinanced.

If you are thinking about getting refinanced soon after a mortgage loan modification, you may be at a loss.

Usually, when you get a loan modification, the bank or the owner of the note is deciding that it is in their best interest to settle with you. they would rather take a small loss than have to go through the foreclosure process, and then resell the home.

That being said, you probably have missed payments, and that has also taken a hit to your credit score. When a bank does a home mortgage modification, they look at your finances and find a sum that they think you can pay.

It is unlikely that you will be able to get a loan refinanced right after a loan modification. Think about it. Which lending institution would risk extending you finance if you have already shown that you may not be able to pay?

The best thing you can do is get on a solid budget management plan, and pay your loan, save and let your credit score heal. In the future, you then may be able to look at getting refinanced after home modification.