| Loan modifications are the perfect way for distressed | | | | equity required to refinance. Remember if you are |
| borrowers to solve a delinquent mortgage problem. | | | | financially upside down in your home, your lender is too. |
| Even if you have late mortgage payments, collection | | | | Your current lender will not have an equity requirement |
| accounts, liens, judgments, or any other derogatory | | | | when it comes to modifying your loan. |
| credit you can qualify for a loan modification. | | | | EMPLOYMENT |
| Most homeowners in need of a change in their | | | | When it comes to employment, the normal mortgage |
| mortgage terms immediately think of a traditional | | | | requirements again do not apply. When applying for a |
| refinance. However, many distressed borrowers | | | | new mortgage a lender will require a minimum of 2 |
| cannot refinance because they do not qualify. | | | | years on the same job. In regards to a loan |
| As most people know there are many qualifiers to be | | | | modification, the only requirement will be proof that you |
| able to obtain a refinance of an existing mortgage. | | | | are indeed working. |
| These qualifiers do not apply in the same way when it | | | | INCOME |
| comes to a loan modification. | | | | Income is also an important qualifier in the mortgage |
| Some of those qualifiers are: | | | | process. Although income is still a big consideration in a |
| - Good Credit | | | | loan modification it is not considered in the same way |
| - Equity | | | | as it is when applying for a new mortgage. Qualifying |
| - Employment | | | | for a loan modification is simply a comparison of your |
| - Income | | | | expenses versus your income. If you can prove that |
| CREDIT | | | | you can pay your mortgage at a certain payment per |
| The beauty of a loan modification is that since you are | | | | month then the lender will modify your loan. |
| working with your current lender who is already | | | | Always remember banks do not want to foreclose on |
| invested in you and your home the criteria are far less | | | | your home. They take huge losses on foreclosed |
| stringent. | | | | properties. |
| The toughest mortgage qualifier for a borrower who is | | | | If you are behind on your mortgage, loan modification |
| behind in payments is credit. When it comes to a loan | | | | may be the perfect solution. Many a distressed |
| modification your credit is not analyzed. | | | | homeowner have negotiated a loan modification and |
| EQUITY | | | | saved their family home from foreclosure. |
| In today's tough real estate market property values | | | | You can too! |
| are plummeting. Many homeowners do not have the | | | | |