Home Loan Modification – What Are the Requirements For You to Get a Successful Application?

If you are a homeowner who is stuck deep in the problems of mortgage payments and risk losing out on the home, then you should have a look into the home loan modification system. But if you are new to this, then most probably you do not have any inkling of how the program works. There are a few requirements which every lender looks into to figure out whether you qualify for the modification or not. The basic principle involved in this modification plan is that the lender reduces the interest rates and locks them for the designated period while also deferring some amount of the principal. But the aspect which the lender checks out before granting you the loan modification is financial security. He has to be sure that you would be able to pay off the new and revised mortgage payments every month without delay.

There are many factors which can play spoil sport to this. For instance, if you have been moving from job to job regularly or have a bad payment history, then it is most likely that your application might get rejected. But on the other hand, if you are sure that you are going to be promoted soon or are confident of getting a job on account of an interview, then the chances increase manifold. The turning point in the application is the hardship letter which should convince the lender of the special hardships which you are facing because of the high mortgage payment. Also, try and make him understand that there is going to be some sort of financial gain which is coming your way due to which the payments will be done on time. But whatever be the case, one thing to avoid is to lie on the application. Sooner or later, the lender is going to find out and then you would be homeless!

Source by Jennifer Hayes

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