Legal Question in Administrative Law in California

Loan Modification

I am paying 8.75 interest on a $920,000 loan. The value of the house is now less than what I Owe. I am not late in paying mortgage. This is an adjustable loan which is going to adjust next year in July. Do I qualify for loan modification in terms of rate reduction .My income is less than my monthly expenses. I have been borrowing money out of my 401K to make up the difference.


Asked on 11/07/08, 5:17 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Re: Loan Modification

I assume that this is your only residence. You need to check with the lender, but you likely can get a reduction in both the interest rate, whilch ils about 2 points higher than the average current rate, but also a reduction in the amount of the loan. Most lenders are not very good in responding honestly, so you may need to also contact groups that lobby for homeowners.

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Answered on 11/08/08, 3:09 am


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