A home loan modification seems like the only available option for many homeowners who are on the verge of losing their homes. As an alternative to foreclosure backed by the Obama Administration, it really might be the only option for millions of people across the country.
Home loan modification is when your mortgage interest rate is lowered and locked at a rate that is affordable for you. The rate is determined by your debt to income ratio, credit, and current property value. It goes without saying that this could help quite a few people.
It’s not possible for everyone to qualify for home loan modification, and even those who do qualify have difficulty getting approval from their lenders.
Anyone seeking modification must be going through times of financial hardship, under almost any circumstances. The financial hardship can be caused by the death of a spouse, loss of a job, illness, divorce, or disability – to name a few. If you are having difficulty making ends meet, you probably fit into the financial hardship category.
However; financial hardship is not the only thing lenders look at when considering you for a home loan modification. They check on a variety of factors, including:-
That the property is your place of residence-The value of the property (Every lender has a maximum value they are willing to modify. )
#)-Your mortgage payment history (Some require that you have been late on at least one payment. )
#)-Whether you have had a bankruptcy in the past-Your credit history
The only way to know what your lender is looking for is to research their requirements. These can easily be found out by calling their offices, but in some cases it’s also possible to find the requirements online.
Besides being able to find the requirements online, it’s also possible to apply for home loan modification online. Not all lenders offer online applications, but many do to make things easier for you and for them.
These streamlined application processes are convenient, but there is no leeway in them. There is no negotiating with online applications either. You are judged by the underline and no further, giving most homeowners lower chances of approval. It may be better to mail of fax the application in for most people.
Home loan modifications are a touchy subject for both homeowners and lenders, and getting one is not easy by any means – whether applied for online or in person.