How Long It May Take to Work Out a Loan Modification
January 18th, 2012
The time it takes to authorize a mortgage modification is dependent upon a number of issues, includingfrom how long the mortgage servicing company takes and how easily the debtors can get their documents gathered. The main issue is how much time it takes the owners to recover economically and be able to pay any amount of monthly loan bill. The bank will not alter a mortgage that can not be paid even at a lower monthly rate.
It also takes time to communicate with the bank and discuss which options are available, and obtain the application for a modification. This might take hours to wait on hold and then get the fax from the bank. Debtors then have to take time retrieving financial documents including bank statements and tax returns, and send this and other material information to the bank.
The entire process can range between several weeks to six months for some debtors. Those who hire private negotiation companies, government counselors, or attorneys may be able to negotiate an agreement more quickly than homeowners working without professional help.