The State Bank Loan Modification

The State Bank was established in Fenton, MI in 1898, making it one of the oldest financial institutions in the area. The bank is now controlled by Fentura Mortgage, a leading originator of sub-prime loans. One of its most recent offerings is loan modification, a process that lets borrowers work out better rates while pausing the foreclosure process.

A loan modification with The State Bank requires borrowers to prove their financial hardship and show a source of income. This assures the bank that their situation is temporary and that they can keep paying after getting the mortgage modification. Valid situations include unexpected medical expenses, job loss, and an involuntary increase in living expenses.

The best candidates for a State Bank loan modification are borrowers in serious delinquency or bankruptcy, or those who are already in foreclosure. Although any borrower can apply for a mortgage modification, the bank favors troubled clients because their goal is to keep foreclosures from weighing down their portfolios.

To get the best loan modification with the State Bank, one should consider working with a loan modification attorney. A good attorney can give credibility to the case and use lending violations wherever possible as leverage to get better rates. They can also talk about loan modification alternatives, such as a short sale or deed in lieu, in case the borrower doesn’t meet mortgage modification requirements.