What Can A Loan Modification Do For You?
Posted by | Posted in Can I Do My Own Loan Modification?, What Is A Loan Modification | Posted on 26-01-2009
Many people are still very confused about what a loan modification is and what it really does for their financial future. If it’s your case, please read on.
A loan modification will adjust your mortgage payments, according to your present financial condition. This is not to be confused with a forbearance agreement, which is an agreement made by the lender to the borrower to pay back past due amounts prior to being foreclosed.
You don’t need to be on the verge of foreclosure in order to apply for a loan modification. As a matter of fact you should act much before you get to that point.
Loan modification, really is on your side and it is your duty to introduce it to your lender. Why do we say your duty? Because lenders are NOT proactive in the matter, but if you are, they will most likely accept your proposal as they will not benefit with the foreclosure of your house whatsoever.
What will this do for you?
Once your application is accepted, it will offer you a permanent change on your mortgage payment, save your home from foreclosure, and most of all keep you and your family in the house.
What are the qualifications for a loan modification? They might be many different versions, but the main ones are:
1) Inability to refinance due to loss of equity.
2) Financial hardship due to loss of job or other inability to work.
3) Facing foreclosure due to delinquency.
Important details you need to know before you file.
Lenders like to receive all the paperwork at one time. If you omit something, your application will be backed up and the whole process will be slowed down as well. Make sure you have a checklist of all the required paperwork and your hardship letter.
You should start as soon as possible as it may take from 30 to 90 days for a loan modification to complete.
You don’t have to face the loan modification challenge alone. However, we understand that you don’t have thousands of dollars to give to a lawyer just for filing paperwork that you can file yourself. We have created a quick FREE loan modification report
