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When you take a loan modification, you change the terms of your loan directly through your lender. Most lenders agree to modifications only if you're at immediate risk of foreclosure. A loan modification can also help you change the terms of your loan if your home loan is underwater.
In December, Wells Fargo reached a $3.7 billion deal with the CFPB to resolve allegations that it harmed customers, including mortgage borrowers. The consumer watchdog agency said the bank illegally assessed fees and interest charges on loans for homes and cars.
It may be possible to take a person's name off your mortgage documents without refinancing. Ask your mortgage lender about loan assumption and loan modification. Either strategy can remove a former co-owner's name from the mortgage.
Ensure that the Loan Modification Agreement is executed by the borrower(s). Note: The servicer may encounter circumstances where a co-borrower signature is not obtainable for the Loan Modification Agreement, for reasons such as mental incapacity or military deployment.
If you aren't able to make your mortgage payments and you want to stay in your home, a modification is usually a good option, ing to Roitburg. "The single largest benefit that borrowers would expect is that they avoid foreclosure," he says. A loan modification can affect your credit.