Are Banks Required To Give Loan Mods?

This is a great question and the answer largely depends on whether your mortgage is backed by Fannie Mae or Freddie Mac. Before March 4, 2009 - Banks were never required to give a loan modification. That said, banks have been accepting and approving loan modifications long before March 4. On March 4th 2009, President Barack Obama passed the "Making Home Affordable" plan that set forth guidelines for banks to follow in order to modify the terms of mortgages. However, banks are only required to follow the guidelines in the "Making Home Affordable" plan if the mortgage is owned by Fannie Mae or Freddie Mac.

You can check to see if your loan is owned by Fannie Mae or Freddie Mac, by visiting their websites and inputting your address. Fannie Mae Loan Lookup. Freddie Mac Loan Lookup.

In essence, banks are not required to give loan mods / modifications unless the loan is owned by Fannie Mae or Freddie Mac. Another item to consider is that even if your mortgage is owned by Fannie Mae or Freddie Mac, banks are not required to reach out and give loan modifications. You must, as a homeowner, be proactive in seeking the loan modification and contact your lenders loss mitigation department to begin the process of the modification. Your banks/lender should be including in your mortgage statement information on how to begin the process and providing the appropriate phone numbers to call.

Just because Fannie Mae and Freddie Mac owned loans are the only mortgages that banks are required to modify, that does not mean that your mortgage can not be modified if it is not owned by Fannie Mae or Freddie Mac. Most banks have followed suit and follow the guidelines set forth by the making home affordable program. You must know how to properly pursue your modification, how to properly complete an acceptable monthly expense worksheet, and how to professionally convey hardship in a letter as well as in the monthly expense worksheet.

The assistance of a law firm backed loan modification company can help you successfully complete and negotiate your modification whether or not your mortgage is owned by Fannie Mae or Freddie Mac. Careful consideration must be given to all aspects of hardship and how your case is presented to your lender. If too much financial hardship is shown, the lender will deny your modification. If not enough hardship is conveyed, the denied result will be the same.

We can help provide a free financial evaluation to determine if you will be accepted for a loan modification. Our free financial evaluation will let you know without paying a dime whether or not you qualify. Fill out the form below for your free mortgage modification financial evaluation.

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