Do You Qualify For A Loan Modification


by David Pit - Date: 2010-03-25 - Word Count: 553 Share This!

Loan modification is quite popular right now with its acceptance as a proven method of preventing an imminent foreclosure or avoiding future problems paying the mortgage. Rather than losing your property to a foreclosure, you should really look in to a home loan modification before it's too late.
A home loan modification is a permanent change to the terms and structure of your existing mortgage to respectfully mirror your current spending capacity and present financial situation. Your monthly payments are reduced through various changes to the terms of the loan. That is done either through a reduction of the principle interest rate, an extension of the term loan, the elimination of fees, grace period so that you can sort out your finances, or a combination of all available options.
But, before you get to that point, you need to understand the qualification criteria for obtaining a mortgage modification. It is very vital that you get your information correctly assembled and as finely and concisely explained in your application so that there will be no reason for the lender not to modify your home loan. Here are the qualifying factors for a successful home loan modification application.
1. Have you recently had one or more late payments on your mortgage? This is an indicator that you are unable to pay your mortgage fully. If a step is not taken then and there, a mortgaged property could be classified for a foreclosure. But, if you think that if the lender reduces your payments you will be able to keep up, you will also might qualify for a loan modification.
2. Is your income affected in any way? If you had recently gone through a divorce settlement, loss of a job, had been assigned to a military task, had a death in the family or had any unforeseen expanses, you are likely to be qualified for a home loan modification.
3. Do you have an adjustable rate mortgage (ARM) but you feel you cannot keep up with the payment when the interest rate goes up? If such is the case, you can opt for a home loan modification whereby if you provide with sufficient evidence that you cannot afford your ARM rates, you can opt to change it to a fixed rate mortgage plan to steady the payment rate and lax the terms of the mortgage.
Although a proper hardship letter and filling out a loan modification application is a good step toward achieving your home loan modified, there are more steps and pitfalls that homeowners can fall in to. Homeowners need to learn the subject in and out, know the vocabulary that shows you know what you are talking about so that the lender will not take advantage of you again.
The best solution is getting a do it yourself loan modification kit. One such kit is 60 Minute Loan Modification. It include a professional hardship letter outline that will catch your lenders attention, it also includes conversation between homeowners and representatives, so that you can hear what to say and more importantly what not to say. The kit will teach you all the needed vocabulary, and most importantly the kit was created by a person who modified five of his home loans, and numerous loans of his clients. Many people used this kit with success, and overall it's a great product.

Related Tags: stop foreclosure, home loan modification

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