For those homeowners facing financial difficulties and unable to make any of your monthly mortgage payment, receiving a loan modification agreement with your lender is a possibility. With a loan modification agreement you are agreeing with the lender of your mortgage that you will pay smaller payments while extending your mortgage so you can stay in your home and budget for all of your expenses.
Are you wondering if foreclosure is in the future for you because of the economy? Then working with your mortgage lender for a loan modification agreement is a possibility for you. You might want to consider getting with a loan modification firm or check with a government program to read the loan modification agreement with you and your lender.
When a lender is considering a loan modification agreement with a homeowner there are many things they consider:
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Have you as the homeowner filed for bankruptcy in the past?
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What is the household’s total income?
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What is the work situation of the homeowner – out of work, laid off, now working for a lower wage at another job?
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Have you been late on your mortgage payments? (Just because you answer yes doesn’t mean you will qualify for a home loan modification.)
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What is your credit score? (The score for a loan modification agreement is lower than for refinancing – which requires a very good score.)
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What has your mortgage payment history been in the past – before the financial hardship?
The qualifying criteria for a home loan modification agreement is different for each mortgage lender, so knowing exactly what your lender is looking for is a good idea. Doing some homework before you go in will help you out, start by calculating what the maximum amount is that you could pay and present it with the loan modification application you submit. The lender will do what they can to work with you and/or your loan modification assistance firm to find a common goal for both you and them as the lender. The lenders would rather get a smaller monthly amount from you then nothing at all and it is better for you to be able to stay in your home by continuing to pay.
Just because you and the entire country are having financial difficulties doesn’t mean that you need to leave your home. The Home Affordable Modification Program has made it possible for families to stay in their homes by reaching a loan modification agreement.
Again, do your homework and review the above criteria and check with your lender. It may not seem they are all a fit, but you never know what may happen by just trying. The government is trying to keep as many financially strapped families in their homes, you can certainly be one of them.
