Loan Modification Guide by HomeRecovery.org
What is a loan modification?
Loan Modification is the process in which your mortgage note is modified without actually refinancing. This process has become the lifeline for millions of homeowners facing home foreclosure. Loan Modification may benefit homeowners by lowering payments, rates & even principal balance. Knowing where to go, who to trust and what programs actually work is the key to getting a successful loan modification.
Getting the right loan modification is important because many homeowners that are approved for a loan modification end up facing mortgage default for a second time. Why? Usually because the mortgage assistance program does not provide a long term mortgage solution. Homeowners can avoid this by doing their research and exploring long term solutions.
How can a loan modification help me?
1. Your mortgage payment may be reduced to an amount you can afford.
2. Late payments & fees may be reduced, restructured or eliminated.
3. Your mortgage rate may be lowered.
4. Principal balance may be reduced.
5. You can prevent foreclosure & get back on track.
Who qualifies for a loan modification?
Qualifying for a loan modification is not as easy as you would think. That is the purpose of the HelpingHomeowners.org website. There are different requirements for loan modification programs you may find online. Qualifications are based on your income, current payment, ability to pay, employment status and other factors. Homeowners that have experienced a recent hardship may qualify.
What is a financial hardship?
A financial hardship is your inability to pay or afford your current mortgage. The cause of your financial hardship must be supported and documented to qualify for most loan modification programs. Here is a list of common hardships experienced by homeowners in distress.
1. Job Loss / Loss of Income
2. Health Issues
3. Divorce
4. Mortgage Rate Adjustment
5. Victim of Predatory Lending
6. Decrease in Home Value
7. Death
8. Job Relocation
9. Failed Business
Where do I go for help?
There are many programs available through the government, non-profits, attorneys and loan modification companies. Government programs have been critized for being slow and failing to help homeowners while loan modification companies across the nation have taken advantage of homeowners in distress.
To assure you get the right answers please contact our experts for a free loan modification consultation.
What documention do you need?
A loan modification is not a refinance. You do not need a new appraisal, title and many other key components of a refinance. You may need documents such as your current mortgage statement, income documents and information to support your hardship. When submitting your loan modification package you will need to include a hardship letter, which must be written and supported correctly or your loan modification may be denied.