During this time of crisis throughout the economy, loan modification is definitely the answer to foreclosure of your property. However, the process is not easy despite the presence of different federal programs to ease the loan modification process. It is rather hard to comply with all the requirements both from the federal programs and the banks granting loan modification. There are 2 major categories of eligibility prerequisite: Financial hardship and if you are current on loans.
In the hardship eligibility requirement you have to prove that you are making significantly less money today than you were when you signed up the mortgage contract. You have to show proofs of medical bills and other sudden unexpected expenses. In general, this is the only reason that you can be eligible for a loan modification. The rising price of gas and food which contributed to your hardship that have led you to feel that your mortgage payment is just too high will not qualify as a financial hardship both for banks and the federal programs. In the current payment on loans this eligibility requirement may look counter-intuitive. If you have a difficult time in paying your mortgage loan that means you may not have paid your loans on time. Unluckily, this may seem that you are not trustworthy enough to be qualified for loan modification. The bank may need to cut their losses and decide to foreclose your property instead of modifying your loans. That being said, if there is any way that you will not be able to pay your mortgage, you must talk to your mortgage lender immediately. Don’t allow it to get out of hand and you’ll not know what they will tell you.
In that event, if you’re not sure whether you are qualified for loan modification and are currently having a hard time getting your mortgage loan paid off, the first thing you have to do is talk to a loan modification lawyer. A lawyer will go through all the paperwork and will help you determine whether you should approach your bank on loan modification or you should take other course of action.
You can also approach a loan modification company that provide mortgage modification. However, you should thoroughly examine them by asking what data to bring in order to have a successful loan modification. The borrower should know how they can be qualified for loan modification. How long the procedure will last and will the process stop foreclosure talks. You can find a list of loan modification firms and look at the reviews and select the reputable company appropriate for your need.
Mortgage loan modification application form should be produced by the mortgage lender. Many lenders may need a brief cover letter, a hardship document, current financial statement and projected financial statement. They might also require an estimated property value from the real estate agency in accordance with the laws of the designated state. You must provide proof of hardship like birth certificate, death certificate, medical bills, divorce paper or bankruptcy papers. Additionally, income tax returns and W-2s for the last 2 years and pay slips and bank statements for the last 2 months may also be required. Most banks need these before considering your request of loan modification.
The MRA Group from websites provides its clients the ability to make strategic real estate decisions based on sound financial principles. Check out mortgage relief advocates from url it has the experience and expertise to follow through on those decisions to achieve pre-determined goals.
Author: Terry MarxThis author has published 2 articles so far.