Loan modification has been introduced in the form of different schemes but its ultimate aim is the same: to help people keep their homes when facing financial hardship by reducing their monthly payments, extending the time for payment or renegotiating the interest rate for payment. A foreclosure is a difficult, demeaning and frustrating procedure to go through and people should have a chance to keep their homes instead of loosing them because of the circumstances they could not predict. Loan modification consultation is even offered for free by some online companies so that the borrower knows the right path to follow from the onset. In the world of loan modification, questions are often asked about who can qualify for a loan modification and what terms can be modified after the qualification.
You have to be eligible to apply for a loan modification by fulfilling some requirements. Some of those requirements include your desire to save your home, mortgage was signed before January 1st 2009, you want to save your primary residence, you have a criminal record and at risk of getting back to old habits due to hard times, your monthly mortgage payment exceeds 31% of your total monthly income, you have not been convicted of a case relating to real estate fraud and you have proof of certified income to handle modified payments. Any loan modification firm, like loanmoddepot.com can help with your application.
After clearing eligibility, the question of what can be modified lies unanswered. With the help of a good loan modification company, your lender can use one or a combination of three different tools to modify your loan. They can extend the length of the loan by up to 40 years, reduce your interest rate or defer part of the principal amount to payment with little or no interest.