- What is it?
A mortgage loan modification is not a loan of its own. It means making some changes to an already existing loan to suit a homeowner’s need. A loan modification firm or a bank offers mortgage loan modification services which are offered to those homeowners who are facing financial related hardships and are not capable of making their monthly mortgage payments.
- Saving your home with it
When you apply for a mortgage modifications loan, you tend to get similar or different loan terms as per your previous mortgage. So, how do you qualify for a mortgage loan modification? A mortgage loan modification’s requirements will depend on the loan modification company’s specifications and how strongly your documentation support your application. The loan modification process stresses on three main parts – the application form, the documentation and the hardship letter. The application form part is clear as all you need to do is understand whatever is required before filling the form. When it’s about the documentation, you need to provide correct and precise documents, like financial statements, pay slips and bank statements in order to support your application.
The hardest part is the hardship letter. Here you are required to make the loan modification firm understand why you were not able to pay your previous mortgage. Be truthful and honest, as you may lose your chance of avoiding foreclosure. Also, during the application, you will need to have a housing counsellor with you to assist you. This will increase your application’s chances of being accepted.