Millions of homeowners in the US have already saved their homes with the help of loan modification programs. Do you want to know the eligibility criteria for a loan modification? Loan modification is best for homeowners who are stuck with an adjustable rate home loan and are not in a position to pay it back. If you cannot refinance and are looking for a solution, a loan modification may be the ultimate option for you. There are some general guidelines for qualifying for loan modification assistance.
Sub Prime or adjustable rate loans- These loans are always offered at higher rates of interest. As the mortgage interest rate increases, your monthly payment will automatically increase, thereby, making the loan unaffordable. So if you have sub prime or adjustable rate loans, you can be an applicant for loan modification.
Financial hardship situation- If you are experiencing a financial crisis, whether temporary or permanent, you may qualify for loan modification assistance. Loss of a job, medical causes,death or job relocations are acceptable hardship situations. But you have to give a hardship letter to your lender explaining the circumstances.
Decline in home value-If you are incapable to pay your monthly home loan payment and cannot refinance or sell your home, your lender can negotiate new loan terms for avoiding foreclosures. A loan modification program proves to be more cost-effective for the lenders.
Our area was one of the hardest hit when it comes to real estate. I always paid my mortgage on time, but when it came time to refinance I couldn’t and my payments became too much for us to handle. Loss Mitigation was my saving grace and allowed us to stay in our home.
Real Estate in our area has been hit hard and prevented us from refinancing. Getting a new loan was impossible and our bank was breathing down our neck. With negative equity in our home we didn't know where to turn. Luckily we found Loan Modifications and were able to save our home. 