How Long Does a Loan Modification Take?

I recently came across an article via the Realty Times entitled, “How Long Does a Loan Modification Take?” by Ralph Roberts.  In the article, he states that a typical time frame for a loan modification is 30-90 days.

How long will it take? The loan modification process typically takes 30 to 90 days, depending mostly on your lender and your ability to efficiently work through the process with your attorney or other loan modification representative.

Back in October of 2007 we called our lender to inquire about loan modification as our interest rate sky rocketed to 9.4%. We held on doing the refinance as we were trying to sell the property. We missed our window and wound up with a mortgage payment that went from $1400 to almost $2200. 

Our loan was with Litton Loans and they stated to us the process would take 45 – 60 days. We turn in all the paperwork needed and we don’t hear back from them for almost a month.. we had top call them. It took us a week to reach someone.  The story goes on and gets worse but I’ll spare the details. In the end our home loan modification process took over 120 days. Something we started in October didn’t finish until February 2008.

Beware that if you are working with your lender on a loan modification, you have to stay on top of them almost every day. And if your lender is Litton.. good lock and God bless.  For some helpful tips on  loan modification check out this article that we posted a while back, How to Restructure or Modify an Existing Loan.