Loan modification is a relatively new term and a highly misunderstood option for many homeowners. Consider a few points on the benefits of a loan modification:
- Interest rates on loan modifications can be lower than those available through a traditional refinance option.
- Loan modifications have the potential to reduce the principal balance owed on your existing mortgage.
- Loan modifications can STOP FORECLOSURE and can keep you in your home with a more affordable payment!
- If you are behind on any mortgage payments, a loan modification can correct any deficient balances and bring you current on the loan.
- Homeowners are eligible for a loan modification whether they have good credit or bad credit.
- If you have an adjustable rate mortgage, a loan modification may be able to provide you a low fixed interest rate.
- A loan modification may be available to borrowers whether they have equity in the property or are upside-down on their home.
- Loan modifications permanently alter your existing mortgage contract.
How do you know if you qualify as a candidate for a loan modification? The criteria can vary depending upon your mortgage lender and current situation. However, many homeowners are eligible for a loan modification or similar program but simply don’t know how to obtain the needed assistance. Mortgage Help Hotline provides homeowners the knowledge, resources, and solutions necessary to attain assistance. Below are a few questions that serve as a starting point to help determine whether you should explore the loan modification options available to you:
- Does your existing mortgage payment (Principal, Interest, Taxes, Insurance, and HOA fees) represent more than 31% of your monthly gross household income?
- Have you fallen behind on your mortgage payments and are unable to cure the deficient amount?
- Have you experienced a financial hardship making it difficult to make your monthly mortgage payments?
If you can answer yes to any of the above questions, than you owe it to yourself to learn exactly what a loan modification can do for you. Call today to speak with one of our mortgage help counselors to determine whether a loan modification may be beneficial for you.
1. Determine Whether You are Eligible for a Modification
Obtaining a loan modification takes a lot of time, effort, and energy. Before embarking on the tedious task of applying for a loan modification, take a few minutes to call and speak with one of our mortgage help counselors. Our counselors will take the time to review your situation and give you the honest perspective and feedback your lender is hesitant to provide. It is a common occurrence for lenders to tell borrowers they do not qualify for assistance which often requires involving a third party to qualify you for the programs you are indeed eligible for.
2. Know What is Attainable Before Applying for a Modification
A general rule with loan modifications is you only get one shot at negotiating new terms of the mortgage. It is very rare that a modified mortgage can be modified again. So, how do you know whether you should accept a lender’s modification offer or reject the offer and continue to negotiate for better terms? If you know what you are eligible for ahead of time than accepting or rejecting a modification offer when it arrives will be easy.
3. Have an Advocate
Successfully navigating the hurdles and obstacles your lender has in place to prevent you from receiving a loan modification is hard enough; knowing whether to accept or reject a modification offer can be even harder. If a loan modification is appropriate for you, we encourage you to employ the services of an experienced professional. Your mortgage help counselor can provide you with options at the time of your consultation.
