Who can opt for a loan modification?
Any borrower who is not able to pay mortgage terms can try for a loan modification. A loan modification can save the borrower avoiding foreclosure. And a loan modification specialist can provide all the necessary loan modification information.
Am I qualified for a loan modification?
As long as you’re facing hardships in paying the mortgage terms, you will qualify for a loan modification. Legally, you should be able to justify your financial hardship for a loan repayment. If you’re in doubt, consult a loan modification expert soon.
Another criteria is when you are facing foreclosure on your home, you can go for a loan modification. It will stop the foreclosure procedure usually taken by the lender. Don’t ever think that the lender will start a loan modification if you’re facing foreclosure. It should be initiated by the borrower to the lender, and that’s how it works.
Following are some criteria necessary to be qualified for a loan modification.
- The money should be borrowed before 1st January 2009.
- If you have an outstanding amount of $729,750 as a primary residence.
- As per HAMP, for a 2 unit property, it’s $934,200; for 3 unit, it’s $1,129,250; and for 4 unit, it’s $1,403,400.
- The loan is qualified for a property that is not condemned.
- You have sufficient income to pay the modified mortgage terms.
- You have never been convicted before due to the crimes like money laundering, fraud, tax evasion, etc.
Still if you fail to modify the loan based on HAMP, you can check out the Home Affordable Foreclosure Alternatives (HAFA) Program by the federal government. In order to know whether you’re qualified or not, you can get advice from a loan modification consultant.
Before checking out your eligibility, keep ready the required documents for your own convenience.