Do I need a co-borrower to qualify for a Loan Modification?

The primary purpose of a loan modification is to help the borrower get back on track when it comes to the mortgage installments. A co-borrower is added to the loan if the primary borrower’s income and assets aren’t enough to make him or her qualify for a loan in the first place. So in case you are falling behind on your mortgage payments and want to look for loan modification options, there are some things to consider if you had a co-borrower on the loan. So if you are seeking loan modification consulting, you can try reaching out to Loan Modification Depot for help.

99-1How does it work?

As mentioned above, a co-borrower is at times added to a loan for qualification purposes. There are also times when married couples taking joint ownership of a property sign the mortgage documents together. In case any of these borrowers fall short of making their regular monthly payments, they can try to get some loan modification help. It is one of the options to help stop a foreclosure by making the payment terms easier for the borrower. In case you are applying for a loan modification and had a co-borrower also sign the documents during the application process, it is necessary to have him or her in loop during the process. If the co-borrower doesn’t agree with the terms, the process will be stalled.

99Exceptions

If a married couple files for divorce and one of them is awarded the house, then he or she would be able to apply for a loan modification without the ex-spouse. However, the person who has the property should qualify for a loan modification without a co-borrower. In that case, the former spouse would be released of all liabilities related to the mortgage and wouldn’t need to sign the new documents.

Loan modification is not an easy or quick process. It needs some good negotiation skills, and hence it is advisable that you hire a reputed firm like Loan Modification Depot to lead the process. This would increase your chances of succeeding.