How Long It May Take to Work Out a Loan Modification
The time it takes to authorize a loan modification depends on a number of issues, includingfrom how long the lender takes and how fast the homeowners can get necessary documents in order. The main issue is how long it takes the debtors to recover financially and be able to afford any type of monthly loan bill. The bank will not modify a loan that can not be paid even at a lower monthly rate.
It also takes time to contact the bank and discuss what solutions are available, and obtain the forms for the modification. This might take days to sit on hold and then get the fax from the bank. Borrowers then have to spend time obtaining personal documents including bank statements and tax returns, and send this and other material information to the bank.
The entire process can take between several weeks to half a year for some homeowners. Those working with private companies, housing counselors, or lawyers might be able to negotiate an agreement more quickly than borrowers negotiating on their own.