Post by lora001 on Oct 4, 2010 23:45:11 GMT -5
You are already behind in your mortgage and you can not meet your mortgage payments due to major hardship or a change in your circumstances. Then you need to look into loan modification.
A home loan modification is much like a mortgage refinance in the way that allows you to find a more affordable mortgage payment for your financial situation. You can still look for a refinance, however if you have already missed some payments, it is unlikely that another lender will offer you a reasonable term. That is why looking in to changing the terms of your existing mortgage is more viable option.
The administration’s push to keep more people in their home and the lenders desire to reduce the foreclosures helps many struggling home owners. Since it is your existing lender that will modify your mortgage the conditions varies. Nevertheless, there is a common loan modification qualification standard; a) You need to show them that you are experiencing considerable hardship due to the change in your circumstances. b) You need to be at least 3 months behind the mortgage payments. c) You need to own and occupy the property as a primary residence. d) Not filed bankruptcy
As I said earlier, it is your existing lender that will modify your mortgage. Therefore, you should contact your lender and advise them of your hardship and get more information. Each mortgage lender will have different loan modification programs and processes. It could be difficult to find the right information and advice in times. Seeking expertise to help your loan modification process can often save you a lot of frustration and money.
You will need to show the bank that you have had a material change in your financial circumstances. You have made every effort to make your mortgage payments and have been cooperative and responsive in working with them. You are not in any way purposefully defaulting to get a loan modification. You are willing to be open, honest, and provide all necessary documentation. You need to prepare a modification package to provide your lender with sufficient documentation to evaluate your ability to pay the new modified mortgage payment.
It is in the best interest of the bank to help you manage your mortgage. It is a better option for them than dealing with foreclosure proceedings. It is not only you. The current economic conditions placed many home owners in similar situation and the banks understand that they have to deal with it.
A home loan modification is much like a mortgage refinance in the way that allows you to find a more affordable mortgage payment for your financial situation. You can still look for a refinance, however if you have already missed some payments, it is unlikely that another lender will offer you a reasonable term. That is why looking in to changing the terms of your existing mortgage is more viable option.
The administration’s push to keep more people in their home and the lenders desire to reduce the foreclosures helps many struggling home owners. Since it is your existing lender that will modify your mortgage the conditions varies. Nevertheless, there is a common loan modification qualification standard; a) You need to show them that you are experiencing considerable hardship due to the change in your circumstances. b) You need to be at least 3 months behind the mortgage payments. c) You need to own and occupy the property as a primary residence. d) Not filed bankruptcy
As I said earlier, it is your existing lender that will modify your mortgage. Therefore, you should contact your lender and advise them of your hardship and get more information. Each mortgage lender will have different loan modification programs and processes. It could be difficult to find the right information and advice in times. Seeking expertise to help your loan modification process can often save you a lot of frustration and money.
You will need to show the bank that you have had a material change in your financial circumstances. You have made every effort to make your mortgage payments and have been cooperative and responsive in working with them. You are not in any way purposefully defaulting to get a loan modification. You are willing to be open, honest, and provide all necessary documentation. You need to prepare a modification package to provide your lender with sufficient documentation to evaluate your ability to pay the new modified mortgage payment.
It is in the best interest of the bank to help you manage your mortgage. It is a better option for them than dealing with foreclosure proceedings. It is not only you. The current economic conditions placed many home owners in similar situation and the banks understand that they have to deal with it.