Loan Modification Process Can Last Several Months
The time it takes to approve a loan modification depends on a number of issues, includingfrom how long the bank delays to how quickly the homeowners can get their paperwork in order. The main issue is how long it takes the owners to recover financially and be able to pay any type of monthly loan bill. The lender will not alter a loan that can not be paid even at a lower monthly rate.
It also takes a while to contact the lender and discuss what alternatives are available, and get the application for the modification. This may take hours to wait on the line and then receive the fax from the lender. Homeowners then need to take time obtaining financial documents such as bank statements and tax returns, and return this and other relevant information to the lender.
The whole process may take from a few weeks to half a year for some homeowners. Those working with private negotiation companies, government counselors, or attorneys may be able to negotiate an agreement more quickly than borrowers working without professional help.