I as recent as last week have heard a LOT of negative comments about the process, and hear that it is very expensive with no real guarantee in the end. Much you can do yourself I would assume, but then again time is not always available for those calls and letters I guess.

It's often a road to failure, but I've seen it work.  I recently had a client run into one of life's little curveballs, and a mod allowed them to keep their home (which was SO important because their 3 children are in the local school).  The process wasn't pretty or pain free, but in the end it's what was best for them.

Yes. I know several people who did HAMP and HARP successfully. All were people who normally had great credit, but had hit a temporary bump. Generally, the process varied from reasonably easy to horrendous. That part appears specific to the lender involved.
I've also seen some horrendous modifications out there, and lot that have failed.

No.  I know of many who abandoned the process and then found us to list their home as a short sale.

I don't know of anyone who has done a loan modification. I know of a few people who started but stopped because it was so complicated.

Yes, although if you asked him he would admit to an arduous journey to get it! Nobody on the lender's side was gracious and kind!

A family member bought their home at the top of the market. When the bad times hit they were under water and their loan adjusted upward. They managed to get a modification. It worked out well for them. They owned in a neighborhood with newer homes, excellent public schools, and attractive prices (during the recession). Buyers turned their attention to that neighborhood and when prices rebounded in our Bay Area market all of the homes in their area rose strongly in value. By holding on and fighting for their modification they were recently able to sell for a nice profit. Since a job change and relocation was the instigator for the sale, they had enough cash to make a substantial down payment on a new home in another state. Their story had a good ending.

A few, I can think of 3 specifically. One lied to the lender and falsified their paperwork, one had a spouse who died, and one ended up in a lawsuit (which they won) with the lender because the lender screwed it up so badly.

End result for all was positive, but only the fraudster had an easy time of it.

I know a few and they had a long road from first submitting paperwork until final approval.  Much stress along the way!

Only one.  She was diagnosed with brain cancer 6 months after closing and the lender was local.  They worked with her to make sure she was able to remain in her home during treatment and during recovery.  It was a win-win.  She keeps her home and they keep a loyal customer.

I know of two families that have been helped tremendously.  While, it wasn't a cakewalk, both these families were able to keep their homes and enjoy the benefits of the modification. I think it depends on the institution and the tenacity of the homeowner!

No; Loan Mods seemed like just temporary fixes.

I do not know anyone who has done it.

Nope don't know a soul. Those who were in trouble went short sale...and I think it was the right decision, from what I know

Yes, I know plenty, including some that came to me for a short sale and after our initial consultation, decided a modification was what they truly wanted. 

Many homeowners who were upside down here in Las Vegas were able to stay in their homes through the worst part of our foreclosure crisis.  Now that values have come back a little they are starting to see break even and even positive equity in their homes again.  I know some who completed short sales or had their homes foreclosed on that would have been better off today if they had been able to work out a modification. 

An indirect benefit of those who worked out a loan modification and stayed in their homes was to the community in general...every modification was 1 less foreclosure or distressed sale that would have otherwise dragged down the market even more.

I have never known anyone who benefited from a loan modification ....

I can't even think offhand of anyone who was successful in getting a loan mod.

I think it is all an ACT!

I know of one that successfully fought the war to get her loan mod. But she ultimately lost the house in bankruptcy after the loan mod rates reverted and bumped her payments above what they were originally. Lenders and the govt. are borderline dishonest about the process. They make it sound like a panacea when in reality, it's more of a Pandora's Box!

Most of the time it's just putting off what's going to happen in the end.  I understand hardships but I don't think homeowners in trouble are looking at the whole picture.

Sally K. & David L. Hanson - you are right - Loan Modification is not for all. It's a band-aid for sure!

There was one prospect of mine I recall that unfortunately could not qualify for a refinance with any bank I had access to.  He approached his loan servicer though and requested assistance in lowering his payments.

Although the servicer wouldn't offer him the lowest rates available (About .50% higher than the market average at the time), they were willing to lower his rate and payment for him permanently with no costs.  He was also able to do this without any type of qualification, as they were simply modifying the contract and not re-qualifying him for the loan.

This is one of very few situations that I've seen, as you are correct, in most cases loan modifications are only temporary and can even cause further challenges for the client down the road.

The saddest thing I see on about a bi-weekly basis is when families were actually told by their loan servicer that they should intentionally STOP making their mortgage payments, so as to give the appearance of a hardship situation.  Then the bank would THINK about helping them after they re-applied in 2-3 months.  In many cases, the family still doesn't qualify and they eventually ended up in foreclosure.  All because of the "advice" some call center representative (who knows nothing about loans) gave them... It's terrible to see.

*Also just a clarification - HARP (HARP stands for "Home Affordable Refinance Program) through Fannie Mae & Freddie Mac is a REFINANCE loan program where a new loan replaces the current loan.  This is NOT a modification.  The HAMP ("Home Affordable Modification Program") though is for a loan modification. :)

I am seeing a trend in new foreclosures. Many were done 5 years ago Sally K. & David L. Hanson and now their rate is resetting from often 0 to 4 or even 5. The moratorium of foreclosure is off and even more shocking is some have not made payments in 2-3 years even with a 0 rate.  On the flip side i did have a few long term clients i help get their loan mod complete and they did rise above, new jobs, or called back to their old jobs who made it

Good morning Sally. I know many people that have been successful with their modifications, as I had done many of the refinances in later years and many more to come.

Yes, I helped several people get modifications. Rather than forgiving part of the loan they got a good reduction in interest rate so they could keep their homes.

I don't personally know anyone who did one.  Several people I know tried, none were granted.

Not really but have run into several that modified and were in worse shape than before.

Interesting- I thought my husband's daughter did a loan modification - she is a big fan of the current president as a result. 

Absolutely! I got a great one when my husband passed away and now it's manageable on my own. 

Sally and David - I do not know of anyone who has had a successful loan modification done, but I have heard that they are easier now than they were a few years ago. Based on what I have read here, however, I may not believe that to be true.

Many of the realtors I know had their mortgages modified. That includes a big brokerage owner. It took 3 times and light of the tunnel finally came. I think the reason is our area home value quantum jumped.  A few who have not paid their mortgage for up to 6 years are still inside.  Many who missed 3 payments get their home foreclosed.  

No.  

I haven't heard of anyone.  The only ones I have heard of, they only reduced the rate by 1/4 of a percent or maybe even an 8th.  The rate was still high and they were still taking way too much interest.  It is really sad.

NO...most actually had their payments raised!

That is like asking if anybody has had long term success with inviting Hezbollah over for dinner.

God what a joke.

How do you modify something that does not even exist?

Oh it is complicated alright.

MAKE IT A GREAT DAY.

Have to say, heard of many trying to get a loan mod done years ago, but did not hear any of them went thru.