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The Instant Loan Modification

January 20, 2011

I have a buddy that was going through a divorce when this financial time bomb began it’s implosion. The market got soft, his investments grew sour and he had to sell property to keep his head above water.

During the drama, he struggled with the loan on his primary residence. He got a few months behind and he asked the lender for help. They, in turn, told him that he didn’t qualify for a loan modification.

He got a room mate, changed jobs and found a way to keep things current.

Last month his lender spontaneously sent him a loan mod. It dropped his rate to 4.25% fixed for 30 years. He ecstatically signed the papers and accepted their offer.


Then, last night, I get a call from a client. Her bank sent a message that their loan modification has been accepted. This is a modification that we began last summer. My client could not prove enough income to make the modified payments so was instead put on a forbearance program to pay back the arrears and catch up on payments – she was 4-5 months behind after losing her job.

Since then she’s been making the normal payment, plus the “catch up” amount, with the threat of NOD if she defaulted.

She’d given up on the loan modification.

Last night she gets an automated phone call that her modification was approved and hold the line to talk to an agent. While she was on hold she called me to see if it was a scam or if Citibank would actually lower her rate.

Perhaps it’s just coincidence but interesting that within a 72 hour period I have 2 clients that are getting instant loan modifications – or instant streamlined refinances. Was there a new release of financial stimulus monies? Did bankers, ala “The Grinch That Stole Christmas”, suddenly hear the sweet song of the Whos and grow hearts?

If they did grow hearts, how do I use this knowledge to help the rest of my clients?

What do you think? Any bankers out there going above and beyond to help the masses get their finances in order? Anyone else pleasantly surprised by a lender lately?

2 Comments leave one →
  1. January 20, 2011 4:43 pm

    That is great news Rebekah. Keep us posted. Are they both the same bank or different?

    • rebiegirl permalink*
      January 20, 2011 5:23 pm

      Different banks – Chase and Citibank. I sure hope this is the start of a trend! Wouldn’t that be great!

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