Loan Modification Process Can Last Several Months
The time required to complete a loan modification is dependent upon a variety of issues, includingfrom how long the mortgage servicing company delays and how fast the homeowners can get their paperwork in order. The first is how long it takes the borrowers to get back on their feet financially and be able to pay any amount of monthly mortgage payment. The bank will not alter a loan that can not be paid even at a lower monthly total.
It also takes a while to communicate with the bank and work out which options are available, and get the application for the modification. This might take hours to wait on the line and then receive the fax from the bank. Homeowners then have to take time obtaining personal documents including bank statements and tax paperwork, and send this and other material information to the mortgage company.
The complete process can take between a few weeks to half a year for some homeowners. Those who hire private companies, housing counselors, or lawyers might be able to reach an agreement more quickly than borrowers working on their own.