| The waive of foreclosures is far from over as we | | | | Stability Act. |
| manage our way through this recession. | | | | Although qualifying for a loan modification varies from |
| Unemployment climbs to record highs as we prepare | | | | lender to lender, there are some factors that are |
| for a second waive of mortgage loan resets and | | | | universal. |
| adjustments. | | | | 1. You must be able to afford the new payment. This |
| With all the hype, confusion, and negative press | | | | is a calculation the lender uses including your current |
| regarding the real estate market, a loan modification is | | | | income vs. expenses. |
| an an effective and successful option to help soften | | | | 2. A valid hardship must exist. Homeowners who have |
| the blow for homeowners. | | | | substantial reserves and/or investments that could |
| So what is a loan modification and how does | | | | potentially satisfy a monthly mortgage payment are |
| someone qualify. Well a loan modification occurs when | | | | likely to be denied. However, the homeowner who has |
| a lender restructures the original interest rate or term | | | | had a health condition now finds themselves behind |
| of the loan because the borrower can no longer meet | | | | because of those medical bills has a stronger chance |
| the obligations of the loan. It may also, although very | | | | of getting approved. |
| rare, include reducing the principal balance. This | | | | 3. You must be proactive. The lender does not want |
| technique has become prevalent in the residential | | | | to help those who do not help themselves. Staying in a |
| mortgage loan market, due to the high numbers of | | | | home for several months without responding to the |
| foreclosure across the nation. The lenders have | | | | lenders calls is a no no. This is not a handout and |
| received government assistance and a potential to | | | | lenders appreciate the homeowner who takes action |
| gain access to more funds as their is an incentive for | | | | early as soon as they realize they is an issue with |
| them to modify loans via programs such as Making | | | | paying their mortgage payments. |
| Home Affordable and the Mortgage Affordability and | | | | |