Loan Modification Process
Loan modification is basically a simple plan to help troubled homeowners avoid foreclosure and pay monthly mortgage installments at reduced amounts. If you know you have no other way to save your house from foreclosure, you need to know the mortgage loan modification process in detail. Here are some of the things you might need to be aware of:
- Seek the services of a competent and experienced loan modification lawyer or a professional company to make the application process easy. Professional companies and lawyers will talk to your lender on your behalf and will also deal with the foreclosure process. You may also purchase a DIY kit for loan modification; however, this may not prove to be an effective solution.
- Loan modification is only applicable to homeowners who are facing a financial hardship. Financial hardship may include the loss of a job, death of an earning family member or increased medical expenses. You may also need to provide a hardship letter stating your situation.
- You may need to present your income history and financial statements so as to help lenders determine your financial hardship. If these documents are not complete and accurate, your application might get rejected.
- Another important aspect of the mortgage loan modification process is the current installments. You may only qualify for the loan modification if your current monthly installment is equal to or more than 31% of your income.
If you are planning to get loan modification, following tips will be useful.
- Make sure your application is complete and all the required documents are submitted.
- Make sure you have calculated the new installments which you can easily afford through a loan modification calculator.
- You should also be able to guarantee that the modified installments will be paid on time.
If you keep in mind the mortgage loan modification process and these tips your application will definitely get approved.