Loan Modification Option A number of banks are open to modifying the terms and conditions of your loan if you qualify. A loan modification will sometimes help make the mortgage payments more affordable for the homeowner. Some of the things the will do for you: - Lowering the Interest Rate (Permanently or Temporarily).
- Lowering the Principal loan balance (not many lender will agree to this).
- Extend the terms of your loan.
Not everyone will qualify for a loan modification, each lender has different rules. Some of the terms that they have in common: - Some lenders will only modify the loan on your primary residence.
- May reduce payments to 31% of gross monthly income.
- Currently loan must have been originated prior to January 1, 2009
- Must complete Hardship Documentation and Screening is required. Documents required are as follows:
- Pay Stubs
- Tax Returns (Usually last 2 years)
- Bank Statements
- Financial Worksheet
- Hardship Letter
Be very sure to make sure that the loan modification company you are working with is reputable. I have a couple of reputable companies that I work with who are nationwide and I would be happy to get you in contact with them. Please feel free to contact me and I will get you the information at no charge to you. |