How Does The Flex Modification Program Work?

Is flex modification program legitimate?

The Flex Modification program helps borrowers who have Fannie Mae and Freddie Mac owned loans.

extend the term of the loan, or.

forbear some of the principal balance.

(“Forbearing” the principal means setting aside a portion of the total debt before calculating the borrower’s monthly payment..

Is it better to refinance or get a loan modification?

Same Goal: Lower Mortgage Payments The key difference between the two methods is that, with a refinance, homeowners receive a brand new, low-interest mortgage. With loan modification, however, the lender simply modifies the existing mortgage so that the payments are more affordable.

How long does a loan modification take?

30 to 90 daysThe loan modification process typically takes 30 to 90 days, depending mostly on your lender and your ability to efficiently work through the process with your attorney or other loan modification representative.

How does a loan modification work?

Under this option, you reach an agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc. In most cases, when your mortgage is modified, you can reduce your monthly payment to a more affordable amount.

Is a loan modification a good idea?

A loan modification can relieve some of the financial pressure you feel by lowering your monthly payments and stopping collection activity. But loan modifications are not foolproof. They could increase the cost of your loan and add derogatory remarks to your credit report.

Can you be denied a loan modification?

If Your Loan Modification is Denied Your lender may deny your modification for another reason. In many cases, you can appeal the decision to deny your loan modification. … Loan modifications are purely voluntary on the part of the lender. You cannot force your lender to offer you one.

Who qualifies for flex modification program?

The Freddie Mac Flex Modification (Flex Modification) provides eligible borrowers who are 60 days or more delinquent (and the property is a primary residence, second home, or investment property), or current or less than 60 days delinquent and in imminent default (and the property is a primary residence), an option to …

How do you qualify for a home modification program?

That being said, there are some basic guidelines that you have to meet to qualify for any type of loan modification:You have to be suffering a financial hardship. … You have to show you cannot afford your current mortgage payments. … You have to be able to show that you can stay current on a modified payment schedule.More items…

What is the difference between a loan modification and refinancing?

A loan modification is different from a refinance. When you take a loan modification, you change the terms of your loan directly through your lender. … When you refinance, you can change your loan’s term, your interest rate and even your loan type. You can also take cash out of your equity with a cash-out refinance.