Many people want to know if you can refinance on a loan modification. The important thing to know here, is that a refinance and a loan modification essentially do the same thing. The difference between a refinance and a loan modification is that in a refinance you can pull equity out of your home, and in a loan modification you have no equity to pull.
With that said, most times there are stipulations that go along with a loan modification that prohibit a refinance afterward for a period of 24 months. So, as long as you wait 2 years after your loan modification, there is nothing stopping you from refinancing.
As always, please check your loan modification documents, however, because not all loan modifications are created equal and sometimes the period before a refinance is extended to 5 years, and other times it’s not there at all.
Short answer: Yes.
As always, it is dependent upon many variables including, but not limited to:
- How recently you filed for a chapter 7 bankruptcy
- How you took your house into homestead
- Your financial status at this time
- etc.
Because this issue has so many variables, it is best to contact us directly and talk about your situation specifically. You can use the quick application to the right, or the contact us form.
What Is a Loan Modification?
A loan modification is simply the change of terms to an original loan agreement. Typically, a loan modification is done for a homeowner that is in financial distress as a means to help the home owner keep the home and avoid foreclosure.
A loan modification can be anything from simply fixing an adjustable interest rate, lowering a principal balance, lowering an interest rate, or any combination of the former.
