| Getting a home loan modification is a great alternative | | | | detailed financial statement of current expenses, |
| for a person that is already in or heading toward | | | | wages and future obligations. A lender will not go |
| foreclosure. The only problem is, not everyone qualifies. | | | | through with a home loan modification if the borrower |
| There are certain requirements that a person must | | | | is only going to default again in a few months time. |
| meet in order to be accepted for a home loan | | | | 3. Representation |
| modification. What are they? | | | | It has been debated by many about the benefits and |
| 1. Financial Hardship | | | | drawbacks of having representation during the loan |
| A lender will not usually consider a person for a home | | | | mod process. The downside is the fee attached when |
| loan modification if they are not facing some legitimate | | | | using someone to represent you. The upside is the |
| type of financial hardship. The term legitimate has to | | | | majority (statistics show up to 87%) of individuals |
| be justified by a hardship letter stating the extent of | | | | represented during the process receive an acceptable |
| the financial hardship. These often include situations like | | | | modification. If you feel you have a compelling enough |
| divorce, death of a spouse, reduction in income or an | | | | hardship and the ability to repay, then representing |
| increase in living expenses such as unforeseen | | | | yourself may be a viable option. If not, having |
| medical bills. There are independent firms that are | | | | experienced and/or professional representation |
| more willing to provide individuals the loan they need if | | | | through the process may be the wisest choice. |
| a current lender has too strict of standards. | | | | Qualifying for a home loan modification does not have |
| 2. Ability to Repay | | | | to be an overwhelming process. Make sure you get |
| A loan modification is designed for a person to be able | | | | accurate information on how to go about the process |
| to get back on his or her financial feet, not just to | | | | and follow through in a timely manner. Demonstrating |
| delay the foreclosure process. A lending agency will | | | | your ability to handle the situation professionally will go |
| want to know that a person will be capable of making | | | | a long way in getting your home loan modification |
| the new payment. This often involves providing a | | | | accepted. |