Loan modification is when the lender consents to modify your loan agreement to give you a less expensive mortgage payment. Loan modification is usually done to avoid foreclosure and stay at your residence. To be able to be eligible for loan modification you need to prove financial problems through evidences documented to your financial institution; though you also have to demonstrate that the bank can still profit from you as a debtor so they don’t just have to decide to foreclose your house. If you choose to get a loan modification through the federal Home Affordable Modification Program (HAMP), your application’s approval will be less determined by your lender’s judgement and more of meeting a more stringent requirements.
Only individual who are extremely suffering from financial hardship may be qualified for a federal home loan modification. This is quite difficult for many borrowers who don’t meet the financial hardship requirements but are nonetheless having a hard time paying off their mortgage. You must know all the requirements before you try to apply for a federal home loan modification. The HAMP program has a number of qualification requirements and only certain individuals, properties and mortgages can be modified. Some of the hardship requirements of the HAMP are quite difficult to understand. It is advisable to seek the help of a loan modification lawyer before you apply for HAMP.
Among the many possible hardships taken into consideration by HAMP can be grouped into few categories such as: divorce; death or illness and you accrue high medical expenses; you are called to military service; change of employment or loss of job and income reduction; loss of rental or other income; business failed; and if you’re forced to relocate. What is common with all of these is the formal documentation or paperwork to exhibit that you’re less capable of paying your mortgage than when you initially signed the mortgage agreement. This is very important to exhibit evidence to your lender and to the federal agency to help them see and rationalize the process.
A good home loan modification attorney will help you streamline the procedure even further by helping you with the forms and paperwork you’ll need. For change of job, you have to produce copies of W-2s and pay stubs. For business that failed, you have to show the internal budget report. For loss of rental and other income, you have to produce copies of past lease contracts and receipts of rent payment.
If you’ll apply for home loan modification you must determine your eligibility as soon as possible. Take into account your proof of eligibility for federal loan modification such as tax audit. The federal government is willing to help you but you must show evidence that you really need it. In the same way you must do it at once, because one of the federal requirements is that you should not miss a single loan payment. In case you are already expecting that you will miss a mortgage payment then you have to decide immediately to apply for federal home loan modification. You have to ensure that you meet all the eligibility requirements, gather all the paperwork and apply for a loan modification in a span of one month.
Familiarize yourself with the The MRA group better, they supply their clients the ability to create strategic real estate property choices based on sound financial principles. An expert in Loan Modification, the MRA group has the ability and skills to follow through on those conclusions to achieve pre-determined goals.
Author: Betty ShawThis author has published 3 articles so far.