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Do you Qualify for Home Loan Modification?
If you’re one of the many homeowners hit by the economic crash, chances are you’ve looked into refinancing, short sales, and other ways to help you get back on track. But if you’re in serious default or are at risk of losing your home, your best bet may be a home loan modification. Also called a mortgage modification, this process involves negotiating with your lender for more comfortable mortgage terms. The government has launched a home loan modification plan, known as Home Affordable Modification Program, designed to help troubled homeowners get better terms.
Each lender has a different standard for granting loan modifications, but the general requirements are pretty much the same. Below are some common cases that may make you eligible for a home loan modification.
Financial hardship Maybe you lost your job, got divorced, or had to pay emergency medical bills. These are all valid reasons (especially in this economy) for falling behind on your mortgage. Note that to qualify for a loan modification, the hardship has to be temporary and you have to have sufficient income. Provide bank statements or financial documents to show that youll be able to keep up with the modified loan.
Adjustable-rate mortgages A lot of today’s home defaults can be attributed to adjustable-rate mortgages, most of which were issued during the sub-prime boom between 2004 and 2007. Once the teaser period ended and the rates reverted to normal, many homeowners found themselves unable to keep up. The government’s home loan modification program allows these homeowners to return to comfortable mortgage terms, so they can avoid foreclosure and save their credit.
Falling home values Many people have found themselves unable to refinance because their home values have fallen, sometimes to a point where they owe more on the home than it’s currently worth. However, decreased home value alone won’t qualify you for a home loan modification, as home values are expected to rise and fall during the life of the loan. But combined with other factors, a decreased value can certainly increase your chances.
Lending violations Sub-prime lenders have been found to violate a number of laws on fair lending, and you can use this to your advantage when applying for a Home Loan Modification. Have a qualified loan modification attorney review your case and see if there are any violations you can use for leverage. With an experienced lawyer, you can negotiate more strongly with your lender and come out with a much more agreeable deal.
Loan Modification to Stop Foreclosure
People should know that in many states it is not allowed to charge any money for a loan modification. The only way that a company may charge you money is after the amendment been done and all this in writing with or without a special APPROVAL. But many companies are charging in advance which is against the law. The reason that these companies charge in advance is because they know that not all qualify for a modification but having already claimed the money, it is very difficult to try to recover it.
For example, the weekend I found an agent who said working for a loan company but is devoted to modifying loans. This person has a real estate license restricted. Be very careful with companies that claim to make changes Here are some tips for your help:
The right way is through the department of mitigation of losses from the bank. The structuring, must be well planned because much income leads to the bank’s refusal to do so and declare little income causing no qualification for the amendment of the loan and raise suspicions at the bank and could lead to a judicial foreclosure.
To extend the terms of the loan – this proposition is now accepted by some banks, the banks typically extend the term of the loan in order to recover the full loan.
Freeze the repayment of the loan – This is quite difficult, because this proposal is based at the bank when the homeowner suffers a temporary decline in revenues. The banks have to accept this proposal to be well secured by the property value or special situations in the housing market as we are experiencing at present.
Qualified professionals in this type of recording of income and ability of the banks are closer to the people who have more chances of success.
877youkeep can help you prepare all the documents correctly to qualify for a loan modification, please contact at any of our counselors, ask references of satisfied customers, also communicate with us if you want to learn about the loan modification situations.