Loan Modification
A loan modification is one of three steps a home owner may take in order to keep their home from foreclosure. In fact, it should be the first step to avoid further damage to credit and the possibility of staying in their property with bank approval of a reduction of mortage, interest and payments.
With the new mandate from goverment to help home owners facing loss of income, a job loss or a valid hardship, banks are under pressure and many eager to help the property owner stay in their home and sometimes even keep their investment property if that is the case.
In order to qualify for a lona modification a home owner has to meet certain specific criteria dicated by lenders by which a home owner proves to the bank that the new mortgage payments can be made under the particular circumstances of the individual ability to pay.
Most banks do the loan modification through the same depatments handling the short sales and in many aspects the process is no different, except that they require verifiably income to proceed. The loan modificaiton may be available to a large number of home owners whom have seen their salary reduced or have had a reversal in their business with a permanent reduction of income.
The most important thing about a loan modification is to meet the banks financial criteria, job permanence, etc. as soon as possible and submit for review.
Call us as soon as you feel that the mortgage payment is becoming a serious hardship and the near future ability to stay current will or is already compromised.
In most cases you will handle the loan modification direct with your lender and you need no one else to help you. Or you may have to hire a expert attorney to do certain legal action to force lender into an agreement. We will speak to you from our experience, however, if it is a legal issue we will immediately refer you to an attorney as we cannot provide legal or tax advise to our clients.
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