Qualifying for a Loan Modification Is Harder Than Getting a Perfect Score on the SAT!

Loan modification is a good way of saving your home from a foreclosure, but the process of applying is hard and getting approved is even harder. Statistics show that 3% and lower of applications are actually approved while millions of homeowners are behind on their monthly payments. With this level of hardship, one must be ready to try their best  so as to save their home. Many loan modification companies exist to help the suffering homeowners and one of them is loanmoddepot.com. A lot of homeowners who opt for a short sale never want to do this, but the hardship of loan modification mitigation is so much that they  have to give up sooner or later.

For a loan modification, the bank usually requires 3 months of bank statements, 3 months of paycheck stubs, letter of hardship, detailed financial analysis and tax returns for 2 years.

Do you really qualify for a loan modification?

  • Firstly, you must decide if the monthly payment is affordable for you and figure out what is affordable if this is not so.
  • Add the sum you can pay to your other monthly bills.
  • After adding everything, you should double the total amount. If the total is up to or more than what you earn then you can afford the house.

If you did not pass the above loan modification inspection, you need to swing into action for getting a loan modification.

Things to note

Short term sales are not beneficial to you or the bank, but only to the lender. They might not want to renegotiate your original agreement to force a short sale, but a loan modification specialist can help you pass the hurdles this situation poses.