It doesn't hurt to ask for a modification," says Jim DuBose, president of Colonial Savings, a mortgage lender in Fort Worth, Texas.
Loan modification, DuBose
says, is "pretty painless.We send them a couple of things to sign.It's not like going through another closing."He
cautions, though, that it doesn't happen often because Colonial Savings
, like most big lenders, sells most of its mortgage loans on the secondary market.In that case, you have to refinance the loan to get a lower rate.
If refinancing is your only option, don't automatically switch lenders.Shop first with your current loan servicer.It might offer you a "streamlined" refinancing, requiring less money, paperwork and time than other lenders require.