I have a subprime mortgage loan and am keeping up my my payments. My house was not expensive – I currently owe $110,000 on my mortgage.
Even though the interest rates have been lowered by the Fed, my ARM just adjusted upward. I spoke to my mortgage company, and they suggested I request a loan modification to request a lower interest rate, and provide them with a new financial statement.
My question is this – how can I increase my chances that my loan modification will be approved?
Right now, my FICO score is poor – lower than when I first applied for my mortgage (though I am diligently working on paying off my debts, or at least becoming current). So if they go by the FICO score in their decision, it will cause me problems.
Are there strategies I can employ in applying for loan modification, so that my request for a lowered interest rate would get approved?
These are my thoughts. I too am going for loan modification. Not because of just wanting a lower rate. Because of possible foreclosure. The banks would rather honor a lower rate than to end up selling your property in the end because of foreclosure and your inability to pay. So I’d say you have everything for you and nothing against you! Good luck!!!
I never thought of it that way. Thanks, and best of luck to you as well!
Thisi s a wonderful thought, good luck and keep us posted, I’m in the same boat! I will be at 16 % in June with a 102,000.00 loan. ha…right…something has got to give.