Loan Modification Facts…
The key to a successful loan modification is to understand what a loan modification is…
What is a Loan Modification?
A loan modification is a change or Modification of one or more of the terms of your existing loan. A Loan Modification can reduce your Interest Rate; lower your monthly payment; Defer late payments and fees, and Stop Foreclosure on your home. Loan Modifications are done regardless of your current Credit Situation, your payment history, or how far you are behind on your mortgage payment. Remember, this is the Modification of your existing loan, not a refinance. A Loan Modification can help you keep your home with an affordable payment. There are several things your lender will look for when considering your loan Modification request.
ONE - What is the cause of your situation and why are you requesting a Loan Modification?
Some of the qualifying hardships include: Loss of Job / Unemployment, Lay off, Reduced Hours, Reduced Income, Divorce, Illness, Injury, Medical Issues, Military Service, Natural Disaster, Property Damage, and even the type of mortgage and/or violations in your mortgage documents can qualify you for a Loan Modification or Mortgage Relief Assistance Program.
TWO - Resolution?
Has the hardship issue been resolved and/or will it be resolved with a Loan Modification?
If not, than what is your plan to resolve the situation?
THREE – Does it make sense?
If your lender does a Loan Modification… Is it going to resolve your mortgage situation and will you have the ability to sustain your new mortgage payment? A Loan Modification has to make sense for you and your lender.
Requesting Assistance from your Lender
If you are having financial difficulties, you are late or may become late on your mortgage payments, don’t wait, the problem will not go away on its own. Also, the longer you wait, the more late fees and penalties add up.
The key to getting a successful loan modification is preparing a complete and accurate Hardship Package. Your hardship package is a summary of your hardship, the resolution, a snapshot of your current financial situation, and the correct support documentation required for your personal situation. Everyone’s situation is unique and different so there is not a “one size fits all” solution for your circumstances. Use caution when dealing with your lender. First and Foremost, they are a debt collector and they are looking out for their best interests. You need to take the steps needed to watch out for your best interests also...
Even the most deserving homeowner may be denied if their application is not prepared properly.
