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Things To Think About When Applying For Loan Modification

Todays Date: October 20, 2018

With the recent economic downturn, the United States has been hit harder than anyone, in particular the housing market and mortgage industries. Companies that are cutting costs by laying off workers render it impossible for these people to repay loans and mortgages that they have.

Many people, good people, are facing home foreclosure. That’s why the loan modification program presented by President Obama could be the panacea many homeowners seek.

For a homeowner facing foreclosure, the loan modification program possesses a lot of things they can work with.

Aspects of the Program:

Home loan modifications are being provided to homeowners, who are unable to pay their loans on time. Here, the lender lowers and adjusts the homeowner’s interest rates to a particular fixed rate for a definite time interval.

A homeowner must meet certain criteria to qualify for the loan modification program. Foremost, the mortgage must be less than $729,500 and signed before Jan. 1, 2009. Homeowners also must produce authentic mortgage paperwork.

The second condition is that you are required to furnish a financial hardship letter, written and signed by yourself. In this letter, you are required to explain the reasons for being unable to pay off the loan on time.

Next, you must supply proof that you can pay what the new terms will become once you sign up. Income versus expenses budget sheets are the required form of proof in this instance. There is one more crucial thing.

You have to address the bank’s loss mitigation department, which will review your loan and stack it against the new program’s terms to determine if you qualify for it. You’ll be able to communicate with your lender, figuring out the best way to modify your home loan.

If a mutually acceptable solution cannot be reached with the lender, the homeowner has the right to seek advice from a home loan modification attorney. A legal counselor can help by explaining the program and advising on appropriate options.

As a homeowner, you have to avail yourself of these new loan modification programs in order to take full advantage of them.

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