Homeowners in need of help and who wants to avoid the nightmare of foreclosure have turned to loan modification bailout programs to be able to stay in their homes.
This method makes the monthly mortgage payments of borrowers more affordable. It also lowers the interest rates but is only available to homeowners or families who are under great financial hardship. And that this hardship is actually not under their control like losing a job, rising daily bills and expenses, death of a spouse or even having a lower salaried-employment when the loan was initially taken.
Because of the home affordable modification program the minimum qualifications for an average Joe or Jane has been lowered. Here are a few things that lenders consider when evaluating a borrower for loan modification bailout programs.
First is the loan creditors credit, income tax documents for the previous year, history of bankruptcy, how much is the amount that the loan is intended for, the property value, the borrowers payment history, and finally the exact reason and circumstance of the financial hardship that the borrower fell under.
A borrower who has poor credit should get in touch or consult with their lender since they are not automatically exempt from having a loan modification. Different lenders are affected differently whether a borrower has or has not made late payments.
Some lenders see a late payment as a sure sign that the borrower finds a hard time in affording their mortgage while others will give a loan modification to borrowers who have not been late for payment.
Aside from the application form, a homeowner needs to submit a letter letter explaining and outlining their reasons for their financial hardship. Applying for a loan modification foreclosure typically is a difficult and long process which can take months before being approved. Even after waiting for months a homeowner may not even get a positive feedback. Therefore, it is very important to be knowledgeable of the lenders foreclosure prevention policies and keep track of the progress of their application.
If the lender appears to be stalling or is dragging their feet do not waste time. Find another lender who will help. There are plenty who will and make sure you follow this golden rule. Do not pay any money upfront to anyone who offers who modify your loan for you.
If you are behind with your payments take action quickly with a loan modification bailout program and do not risk losing your home.