Due to the all time high rate of foreclosures in the country, many financial institutions are offering mortgage modification programs to help the borrowers get relief from the heavy installment of their home mortgage loan.
In reality this was the initiative taken by the present government so that the homeowners who are the most sufferers of this economic crisis get a sigh of relief.
The loan modification programs are specially designed so that the borrowers are provided with affordable loan installment option and they get their existing home loan restructured and made comfortable for the repayment.
Although your lender has his requirements that need to be fulfilled, you must be aware of the basic requirements that the government has fixed as standard ones.
The first one is that you must have a genuine reason behind applying for the loan modification.
You have to mention this reason in your hardship letter and you might be asked to produce relevant documents for the support of your statements.
You will also have to provide supportive documents and justify your reason and then the lender will consider your point and evaluate them on his norms.
Before applying for mortgage modification of your home loan you must go through the requirements and if you find difficulty in understanding the legal terms used in the form, seek professional help from a third party.
You must be aware of the fact that there are numerous loan modification companies that will offer help for this purpose but you have to choose the genuine one so that you don't get cheated at this crucial state of life.
So choosing the right loan modification company is important.
Now, there are various types of loan modification programs and you have to choose the one that fits in your financial status.
Here too your financial advisor will be of great help and guide you in choosing the right program.
Most often the modification program will reduce the loan installment amount below 31% of the total income of the borrower and can also increase the loan repayment tenure.
Some lenders can also change the loan repayment tenure up to 30 years and fix the rate of interest at the lowest that is up to 2%.
So it depends upon how you convince your lender about your financial situation.
And even if you have got the foreclosure notice, you can apply for loan modification.
In reality this was the initiative taken by the present government so that the homeowners who are the most sufferers of this economic crisis get a sigh of relief.
The loan modification programs are specially designed so that the borrowers are provided with affordable loan installment option and they get their existing home loan restructured and made comfortable for the repayment.
Although your lender has his requirements that need to be fulfilled, you must be aware of the basic requirements that the government has fixed as standard ones.
The first one is that you must have a genuine reason behind applying for the loan modification.
You have to mention this reason in your hardship letter and you might be asked to produce relevant documents for the support of your statements.
You will also have to provide supportive documents and justify your reason and then the lender will consider your point and evaluate them on his norms.
Before applying for mortgage modification of your home loan you must go through the requirements and if you find difficulty in understanding the legal terms used in the form, seek professional help from a third party.
You must be aware of the fact that there are numerous loan modification companies that will offer help for this purpose but you have to choose the genuine one so that you don't get cheated at this crucial state of life.
So choosing the right loan modification company is important.
Now, there are various types of loan modification programs and you have to choose the one that fits in your financial status.
Here too your financial advisor will be of great help and guide you in choosing the right program.
Most often the modification program will reduce the loan installment amount below 31% of the total income of the borrower and can also increase the loan repayment tenure.
Some lenders can also change the loan repayment tenure up to 30 years and fix the rate of interest at the lowest that is up to 2%.
So it depends upon how you convince your lender about your financial situation.
And even if you have got the foreclosure notice, you can apply for loan modification.
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