| A mortgage loan modification is one of the best and | | | | hiccup in the smoothness of the modification process. |
| most effective ways to save you from foreclosure | | | | 2 - Have a steady and verifiable income source. This |
| when you are overwhelmed by the payments of a | | | | is important because it indicates that you have the |
| high interest mortgage. This process significantly | | | | ability and money to repay a modified loan. |
| reduces your monthly payments so you can afford | | | | 3 - Live in the house as your primary residence. |
| them and stay in your home. | | | | Mortgage loan modifications are not usually done for |
| Banks and mortgage companies have no reason to | | | | people who buy property as professional investors or |
| refinance your loan, rework your loan payments, or | | | | to rent homes out or sell them for a fast profit. For |
| slash your principal amount based on the current value | | | | example, the programs launched by the Obama |
| of your home unless it makes financial sense from | | | | Administration encourage lenders to modify loans for |
| their perspective. Unless they can get more money | | | | families but do not offer incentives or encouragement |
| than they would get without doing a mortgage loan | | | | to do them for investors. |
| modification, doing one will not be a wise business | | | | 4 - Have a legitimate reason or hardship that shows |
| decision on their part. On the other hand, if they take a | | | | you really need the help. If you can show the loss of a |
| look at your situation and decide that modifying your | | | | higher paying job, if you have lost the head of your |
| loan will allow them to receive lower payments instead | | | | household, or if you can show that you were talked |
| of no payments at all, this is a wise business decision | | | | into a high-interest loan that you should not have been |
| for them. If you qualify, your lender would prefer to | | | | offered in the first place, these are all considered valid |
| modify your loan payments so you can stay in your | | | | reasons to rework your mortgage to a lesser amount |
| home instead of foreclosing on your home and taking | | | | that you can afford to pay. |
| a loss. | | | | Based on these criteria, if you think you may qualify |
| Although there are exceptions to every rule, the | | | | you should take a few minutes to talk to a specialist |
| perfect mortgage loan modification candidate will: | | | | now. There are trusted websites that will connect you |
| 1 - Have no home equity loans (or "second lien | | | | with someone that understands your needs and can |
| holders".) Having a secondary lien means that another | | | | help you get back on your feet. A conversation with a |
| lender or investor will have to agree to any of the new | | | | professional could help you save your wallet and your |
| changes that your primary lender makes. Although it | | | | home. |
| can still be done, be aware that this could cause a | | | | Ken S. |