| Who Makes a Good MortgageLoan Modification | | | | likelihood of getting your mod approved. You need to |
| Candidate? | | | | mention any of the above reasons in your hardship |
| Do you want to learn how to modify your loan into a | | | | letter. |
| better fixed rate, a lower payment, a lower principle | | | | So, which borrowers have a smaller chance of getting |
| balance, and delinquent payment forgiveness, but have | | | | their loan modified? For starters, investors rarely get |
| no idea where to start? You’re not alone. Loan | | | | approved because mortgages on investment |
| modification isn’t terribly hard to do, but it can be | | | | properties are way more difficult to modify for |
| intimidating to the uninitiated. The first thing you must do | | | | complicated reasons, not the least of which is that |
| is decide whether you are actually a likely candidate to | | | | lenders are simply not very sympathetic for investors |
| be approved for a loan modification. | | | | who overextended themselves (though that may be |
| The ideal loan mod candidate has a job, is one or two | | | | changing in the coming months). Self-employed |
| payments behind on his or her mortgage, occupies the | | | | borrowers are more difficult than those with regular |
| one house he or she owns, and is just a little short on | | | | jobs, but certainly not impossible. |
| his or her overall budget every month. A couple | | | | If you’re unemployed and have no other |
| hundred bucks lower payment will make all the | | | | noteworthy income, you need to either get a job |
| difference. | | | | before trying the mod or begin working with a short |
| Homeowners who recently had to find a new job, or | | | | sale expert to sell your house immediately, unless the |
| who had an expensive and debilitating illness or injury, | | | | unemployment is truly temporary (and about to end) or |
| are great candidates for a loan modification. A death in | | | | due to medical problems. If you have a lot of personal |
| the family, getting divorced, or having a baby are | | | | debt besides the mortgage (such as credit cards), your |
| commonly accepted reasons for loan modification | | | | modification will be difficult to pull off due to elevated |
| approvals. Borrowers who took a pay cut often | | | | debt-to-income ratios. Assuming you don’t have |
| qualify, and so do situations where one spouse | | | | the cash to pay this debt off right now, you may want |
| recently lost a job. Adjustable rate mortgages (ARMs) | | | | to consider bankruptcy now, and then pursuing the |
| that just increased in rate and payment, or are about | | | | modification later. Consult with a bankruptcy attorney |
| to, are perfect loan mod candidates. If any of these | | | | to decide if this strategy is right for you. |
| situations apply to you, then you have a higher | | | | |