What Are Mortgage Modification Rules?
- Date: 2010-08-20 - Word Count: 505
Share This!
When a borrower falls behind with his mortgage payments to the lender, he or she may opt to apply for mortgage modification. In a nutshell, mortgage modification is a name given to a collection of relaxations that lender bestows upon the borrower considering the circumstances which are keeping the borrower from making the payments. But, not all borrowers can apply for mortgage modification; there are certain predetermined mortgage modification rules that are to be followed. Listed below are some of the rules:
Verification Of Borrowers Identity
This is the first basic security step in which the borrower is asked to verify his/her identity by presenting social security number, driver's license or birth certificate and other documents of such nature that will assist in authenticating individual identity.
Always Apply For Primary Residence
Mortgage modification is always granted for your current and primary place of residence. An applicant has to be mindful as to not apply for mortgage modification for place of business, summer home or any other place. It has to be for the house, apartment or any other form of dwelling where the applicant resides in permanently.
Never Hide Any Financial Information
Some borrowers think they can make a difference by covering up certain details and aspects of their financial statement that would make their current state of things look deplorable. Nothing could be further from the truth and inadvisable. The lender will have all the financial information at its disposal under any circumstances so the borrower should be honest and help his or her case along. All the information provided to the lender should be complete and unaltered.
How Much Burden Will The Loan Payment Put On Your Income
Guidelines for the newly negotiated loan modification clearly state that at least 30% of your gross income should be allocated for loan repayment. There might also be other surcharges that are to be taken into consideration. The amount and extent of information you have to divulge to the lender varies from one lender to another.
Hardship Letter
Last but by no means least, this last requirement for a mortgage modification is perhaps the most important part of acquiring a mortgage modification. Hardship letter is a detailed document that makes it evident to the lender that borrower is facing circumstances which are financially exhaustive and a mortgage modification is imperative. Absence of hardship letter would mean outright refusal of mortgage modification and hence the document should be compelling, well made and comprehensive; seeking professional help while preparing hardship letter is strongly recommended.
Obama's Loan Modification Plan (HAMP) Home Owner Affordability And Stability Plan
Considering the present economic crisis that has hit the country, present government to aid the homeowners has announced an all-inclusive package worth $75 billion. If anyone wishes to be a recipient of this bailout program, certain predetermined criteria are to be met which are described below:
The current mortgage amount must be less than $729,750 and the mortgage must have been sanctioned before January 1, 2009. The mortgage repayment is equal to more than 31% of home owner's gross income.
Verification Of Borrowers Identity
This is the first basic security step in which the borrower is asked to verify his/her identity by presenting social security number, driver's license or birth certificate and other documents of such nature that will assist in authenticating individual identity.
Always Apply For Primary Residence
Mortgage modification is always granted for your current and primary place of residence. An applicant has to be mindful as to not apply for mortgage modification for place of business, summer home or any other place. It has to be for the house, apartment or any other form of dwelling where the applicant resides in permanently.
Never Hide Any Financial Information
Some borrowers think they can make a difference by covering up certain details and aspects of their financial statement that would make their current state of things look deplorable. Nothing could be further from the truth and inadvisable. The lender will have all the financial information at its disposal under any circumstances so the borrower should be honest and help his or her case along. All the information provided to the lender should be complete and unaltered.
How Much Burden Will The Loan Payment Put On Your Income
Guidelines for the newly negotiated loan modification clearly state that at least 30% of your gross income should be allocated for loan repayment. There might also be other surcharges that are to be taken into consideration. The amount and extent of information you have to divulge to the lender varies from one lender to another.
Hardship Letter
Last but by no means least, this last requirement for a mortgage modification is perhaps the most important part of acquiring a mortgage modification. Hardship letter is a detailed document that makes it evident to the lender that borrower is facing circumstances which are financially exhaustive and a mortgage modification is imperative. Absence of hardship letter would mean outright refusal of mortgage modification and hence the document should be compelling, well made and comprehensive; seeking professional help while preparing hardship letter is strongly recommended.
Obama's Loan Modification Plan (HAMP) Home Owner Affordability And Stability Plan
Considering the present economic crisis that has hit the country, present government to aid the homeowners has announced an all-inclusive package worth $75 billion. If anyone wishes to be a recipient of this bailout program, certain predetermined criteria are to be met which are described below:
The current mortgage amount must be less than $729,750 and the mortgage must have been sanctioned before January 1, 2009. The mortgage repayment is equal to more than 31% of home owner's gross income.
Your Article Search Directory : Find in Articles
Recent articles in this category:
- Understand The Fha Guidelines Before Considering Fha Mortgage
The U.S. economy was hit hard by the global financial meltdown. In the housing sector, the crisis is - Basic Facts About Multifamily Apartment Construction Loans
When you make an investment, you surely think of getting something out of it to make the deal profit - Commercial Mortgage Refinance Loan - Ideal Solution For Financial Problems
Financial security is something which we have to plan from before. In life, there is no certainty wh - Free Government Grant Money Eligibility Requirements
All of us hear about free government grant money. But what is involved in obtaining this money? What - Top 10 Tips On Buy To Let Mortgages And Property Hunting
If you are looking for an opportunity to invest your savings or any money you have come into, there - A Few Tips On How To Stop Foreclosure
In case you are facing certain financial catastrophe caused by a loss or relocation of a job, or wha - How To Stop Foreclosure And Lose Your Residence To The Bank
In today's market, there are more and more citizens that get big loans then they use their home as a - Most Excellent Way To Stop Foreclosure - The #1 Blueprint For Saving Your Home
Just what is the best measure to stop foreclosure? No doubt you are browsing for an answer to that q - Act Fast To Stop Foreclosure
If you would like to find out how you can put a stop to foreclosure, there is not much to accomplish - Tips For Buying A Home With No Money
There is a popular belief that you can only buy a home if you have great credit. This is false becau
Most viewed articles in this category:
- Mortgage Refinancing - Rate Caps Protect You When Refinancing With an Adjustable Rate Mortgage
Adjustable Rate Mortgages can save you money when mortgage refinancing if you fully understand how t - 100% Mortgage Loans: What You Need to Know
Coming up with a 20% down payment can be a difficult task for many potential homebuyers. If you are - Home Equity Loan Pitfalls
The home equity loan came of age in 1996 when changes in the tax law eliminated deductions for the i - Mortgage Refinancing: How the Fannie Mae Weekly Yield can Help You Comparison Shop
Mortgage refinancing without knowing Fannie Mae's weekly yield is like buying a used car without kno - How to Pay Off Your Mortgage in 7 Years, Without Extra Payments
One of the most exciting new topics concerning wealth is “How to Pay Off Your Mortgage in - Mortgage Rate Comparison
Trying to get an "apples to apples" mortgage rate comparison can often be quite a hassle. Traditiona - Should I Pay Off My Mortgage Early?
Many people think that real estate debt is good debt. They think that their mortgage is their bigges - Mortgage Refinancing: Beware the Mortgage Vultures
If you are in the process of mortgage refinancing you need to be wary of overpaying for your loan. - Mortage Loans - How Much Does It Actually Cost In The End
Mortgage loans are the loans used to finance most people's first home. It is the big loan that ever - Where To Locate Home Improvement Loan Companies
Where to locate home improvement companies is a question that arises from many different people. Som