A loan modification process refers to the entire procedure of applying for a loan modification till its approval by the lender. This process can take a long time to finish and the end results may be a denied application. So, it is advisable that you have a loan modification expert by your side to guide you through the whole process. In this case, loanmoddepot.com should be your friend. This is a firm that offers loan modification services and they are well aware of the process and all the possible application outcomes. In addition to that, they offer you with insights into what to do and what to avoid in this regard.
This is the standard method homeowners use when modifying their mortgage loans. It involves modification of the loan to a new favorable monthly payment plan that you can actually afford to pay. It is also known as the Home Affordable Modification Program (HAMP). HAMP is authorized by the Treasury Department’s Loan Workout Plan for application. When your lender will receive your loan modification application, they will have to review it under this method. If your loan and financial situation are a perfect fit for the program then it will be of great help in determining what follows next.
The Relationship Between the Waterfall Method and the Loan Modification Process
The waterfall method is influential in any loan modification process. How? It is a key determinant on the next process that the lender will proceed to. The loan modification process is tied with waterfall method in that the homeowner first requests for the HAMP from the lender. The homeowner then completes the application and attaches necessary documents of their income (paycheck). The lender then reviews the application and confirms the provided details. Thereafter, the waterfall method is put into play and the eligibility of the borrower is determined. If it is accepted, the homeowner can modify the loan according to the standard terms of application. Finally, the application is taken through a 3-month trial before the modification is permitted and adopted.