Loan modification processing

Loan Modification Programs are popular right now as the homeowner has an outlet to facing foreclosure. A loan modification is different than a foreclosure, a foreclosure means the borrower has been delinquent for more than six months or longer and cannot refinance their home because the home exceeds the value of the loan. In other words the loan is more than the home is worth.

A loan modification program can lower payments without refinancing, it can waiver late fees and lower your interest rate. A home loan modification is like a refinance with the objective of finding a suitable payment agreement the homeowner can agree to with considerations to their financial situation, in fact it is often called a modified refinance with the only difference is that instead of looking for a new loan, you modify the terms of the loan.

Not everyone can qualify for a loan modification program; first the borrower has to prove there is a hardship in the family to qualify through pay stubs, receipts and spending habits. They have to miss no more than 3 payments or a 90-day time period, they have to own and occupy the property as a primary residence and have not filed for bankruptcy.

The first step is to contact the lender to see if you can qualify for a loan modification versus refinancing or when refinancing is not an option. Each mortgage lender or service will have different modification programs and processes, so the process varies by the lenders. Some lenders require you to attend budget counseling services to ensure this does not happen again, debt counseling is a good idea because it can show you where your money is going in addition to revealing what can be saved.

Another qualification you have to prove is that you have had a material change in your circumstances, you have made every effort to make the payments, you are not in any way purposefully defaulting to get a loan modification and finally that you are willing, honest and able to provide all documentation of your hardships. You must prove economic hardship by having receipts, tax statements, utilities and other bills on a monthly basis. This will prove that you cannot afford the mortgage to qualify for government help.

The purpose of a loan modification is to prevent foreclosure and to get the payments affordable to the borrower, no one wants to lose their home so taking the steps to acknowledge and prove your circumstances will give you a better chance of getting into a loan modification program that will work for you. Ignoring the problem will only make it worse so call your lender today to discuss options if you are behind on your mortgage. Take action today to avoid foreclosure, as it will affect your credit rating and your ability to get another loan. Ignoring the problem is the worst thing you can do so make the call today to your lender and stop your home from being foreclosed.




If you need foreclosure help, you can get it based upon your individual needs. You do not have to just allow the foreclosure process to take control of you - you can stop foreclosure by loan modification processing & mortgage help.