If you’re going through hard times and can no longer afford your mortgage payments month to month, looking into getting a loan modification package from your lender may be the solution for you. There are literally millions of people out there with millions of difference circumstances that make it nearly impossible for them to afford their monthly loan payments these days. People have lost jobs, gotten demoted, had a death in the family — different scenarios for different people, but the result is always the same: inability to pay their mortgage.
A loan modification package is the only light at the end of the tunnel for millions of Americans. Through a loan modification package, a homeowner’s mortgage interest rate and monthly payments are lowered down to an affordable alternative. Something like that isn’t easy to receive, however, and every lender has their own set of regulations to adhere to when considering a borrower for a loan modification package.
Many, if not all, lenders will look at the following:
- Whether or not the homeowner has filed for bankruptcy in the past.
- If the homeowner resides on the property they are unable to afford the payments on.
- The homeowner’s mortgage payment history.
- The homeowner’s and residents’ income and income taxes, as well as bills.
- The homeowner’s credit.
- Whether the loan was taken out prior to January 1st, 2009.
- The amount of the homeowner’s current mortgage.
Each lender’s requirements vary, but they all essentially look at the same things. However, it’s worth noting that many lenders do not necessarily require great credit or late mortgage payments to qualify for their loan modification packages. Call your lenders and ask for application papers or give them a call and ask what the requirements for loan modification are. Be sure to try to speak to the Loss Mitigation Department. Almost every lender has a Loss Mitigation Department and in most cases they are the only department who are really sure what to do with loan modifications and how to process them properly.
