Is Loan Modification for You?

If you find yourself struggling with paying your mortgage, loan modification may be able to help you. Loan modification not only decreases your monthly payment but also can help you decrease your debt and prevent foreclosure by:

• Lowering your interest rate
• Give you extensions on payments
• Decrease your loan balance
• Eliminate some accrued interest

Obama’s Loan Modification Stimulus Program

This is the one of the best times to take advantage of loan modification. President Obama is currently working with lenders by creating a $50 billion loan modification program.

Qualifying for Loan Modification

You do need to qualify for a loan modification. You must prove to your lender that you have a financial hardship. This financial hardship can be due to one of the following:

• Debt ratio of at least 31%
• Divorce
• Marital separation
• Unemployment
• Military
• Death of co-borrower
• Natural disaster
• Illness

Improving Your Chances for a Loan Modification

Lenders aren’t just passing these loan modifications out. They are being picky about who really deserves them. This is why it’s important that you research exactly what you need to qualify for one. Pick up the phone and call your lender to inquire about their procedure for loan modification. Ask what needs to be submitted and what someone’s financial situation has to look like to be accepted for one. With this information, you can start to build your case for one. While it may take some work to get your loan modified, it will save you a lot of money.

August 19th, 2009 by Marcelina Hardy | Posted in Saving Money | (0)