Many homeowners struggling with mortgage loan payment could benefit from different loan modification options that lenders like banks avail today. A loan modification program can result in a lender re-adjusting the principal amount of loan, deferring payment for a certain period, or resetting the interest rate.
A popular myth about loan modification is that it’s very difficult for one’s application to be approved. On the contrary, many banks also hate having to go through the foreclosure process with their borrowers since they can also lose money in this process.
Did you know that the loan modification program is actually backed up by the federal government and that banks are given incentives to motivate them to offer loan modification service to delinquent borrowers? Many people don’t know this, and also that the loan modification program actually allows the bank to collect all their money without the struggle of going through a foreclosure or a collection agency.
What is the requirement for entering loan modification program?
A lot of people think that you must be a delinquent borrower to be eligible for the loan modification program. At loanmoddepot.com, we encourage homeowners to apply for the program if;
- You are facing financial challenges that can result in your defaulting your home mortgage repayment.
- If the value of your property has dropped below the value of the debt you owe.
- If you are unable to get refinancing for your mortgage rate when your adjustable rate mortgage has escalated the principle amount crazily.
If your loan modification application is successful, you could benefit from a lifesaving loan modification service like:
- A reduction in your interest rate
- A reduction in the principal amount
- Revision of your monthly payment such that it falls within 31% of your debt to income ratio.
Suffice to say, different banks have different eligibility requirements, but the main requirement is for the borrower to have a steady source of income so that they are able to pay their mortgage when adjusted.