I am going through a loan modification right now. Yes, the modification on your loan will only last for 5 years. Getting a loan modification is only to help you make the payments right now and give you time to catch up. Then after a certain amount of time your loan will gradually go back up to what is was before. That’s all it was meant to do.
If you decide to go through with a loan modification, make sure you find a company who offers a money back guarantee. The lawyers I’m working with will give you your money back if they cannot modify your loan or if they cannot save you enough money per month. Do research on anyone you want to do business with and read everything they send you.
It’s best to go through a company since they will be using their lawyers to force your lender to modify your loan. If you do it yourself and mess up, that’s it, you won’t be able to qualify for a modification on your loan again on that house.
Also, it could take up to 90 days for the modify to happen or it could happen in as little as 30 days. It depends on if you stopped making payments on your house or if you are in foreclosure. If you are still making your payments it could take 90 days since there will be others ahead of you who are in a worse spot.
To get your loan modified, you will need to show that you are within $100 to $200 left per month after all your bills are paid. You will have to show what all your bills are and who you owe like credit cards, car loans, student loans, and such. As long as you are in that range, you will qualify for a modification. The amount you save per month is calculated on what you earn before taxes yearly against what your bills are… something like that, It was told to me but I forgot exactly how that went again!
Good luck!

It really depends on what you agree on with your lender. There are so many variations a lender could put in a loan modification contract. Some modifications are only temporary for 5-10 years other are for the life of the loan. make sure you read all paper work carefully before accepting any offers….

Hello,

If you get a loan modification done correctly, it should change
your terms to a 30 year fixed loan and your monthly payments
will be lower since load mods result in a principal and/or
interest rate reduction.
Why are you working with two organizations? The lender will
only honor one application for a loan mod at a time. If you
mess up the app, it will be difficult for you to get a loan mod
approved even if you qualify.
Feel free to connect through the website below and will be
happy to help – need more details about the case to
make an assessment.