By Susan V. Gregory
Trying to apply for a loan modification but worried about whether you will qualify? It's true that not everyone will qualify for a loan modification to lower their payment-so how can you be sure to get your application to the front of the line and have the best chance for approval? Here are 3 Important Qualifications for approval you should know before you apply.
Loan Modification Qualification #1: You must be able to demonstrate to your lender that you have suffered a financial hardship that has made your current mortgage payment unaffordable.
There are certain circumstances that lenders will consider as an acceptable hardship situation. Divorce/separation, military service, death of a family member, job loss, reduction in income, medical expenses, illness, incarceration and job transfer are all considered to be eligible for consideration. Loss of equity alone does not.
Loan Modification Qualification #2: Can you prove to your lender that if given the new lower modified mortgage payment you will be able to afford to maintain it now and in the future? Lenders want to know that you will not be at risk of defaulting again.
How can you prove this to them? Make it simple by providing the required financial statements--one Current and one Proposed--so that they will demonstrate your ability to pay the new payment and help convince your lender to grant an approval for your proposed new lower payment.
Your current mortgage payment, including your property taxes, homeowners insurance and any Homeowners dues, must equal more than 31% of your gross monthly income.
Loan Modification Qualification #3: Be able to submit an accurate, acceptable and complete application to your bank for review and consideration. Your lender will make a decision based in large part on the information you provide to them. Submitting an incomplete and poorly prepared application can result in a denial of the help you need.
Be sure you prepare the paperwork properly and then submit everything your lender will need all together in a professional and acceptable loan modification package.
TIP: Make sure that you prepare your financial statement before you call your lender. Do not disclose any of your income or debts until you have taken the time to work on your budget-make any necessary adjustments and know that you fit into the approval guidelines. This is easy to do if you follow the directions in a handbook for homeowners.
These are extraordinary times and more homeowners are faced with losing their homes than at any other time in our nations history. Borrowers who need help cannot wait to be rescued-help is available but you must know how to get it and be prepared to fight for your home. Start now by learning and preparing to submit your application to your lender to get the help you need and deserve.
Billions of dollars in your tax dollars have been allocated for loan modification programs to help stop foreclosures. Don't miss out on your chance to save your family's home.
You do not have to try to figure this out by yourself- get the help you need to apply and qualify for a loan modification by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application.
You are provided with all of the necessary forms and given detailed directions on how to complete them properly. A best selling handbook for homeowners,
The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to qualify for the Obama federal stimulus plan. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.
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