Loan Modification Help – Lead A Tension Free Life

Now days many homeowners find themselves facing frustration and confusion, when it comes to the loan modification process. However, this can be avoided if you know the right person fit for negotiating with your lender
By: 1st Foreclosure Prevention
 
March 8, 2010 - PRLog -- Now days many homeowners find themselves facing frustration and confusion, when it comes to the loan modification process.  However, this can be avoided if you know the right person fit for negotiating with your lender in order to work out a mutually beneficial agreement and avoid foreclosure. However, before even trying to locate such a source there are number of questions that people usually ask themselves and try to find answers to in order to grasp the whole idea of the loan modification process, how it works and what should your objective expectations be.

First of all, let’s start with the basics. What is a loan modification? To put it simply through a loan modification process you can permanently change one or more aspects of your home loan, thus enabling the reinstatement of your loan and establishing a new payment that you can actually afford.

Next, what are the criteria by which people qualify for this process? There are several factors but the most important is demonstrating your lender the financial problems that you currently face due to reasons that are usually homeowner specific such as lower income or higher expenses caused by divorce, loss of job, death of spouse or co-borrower, job relocation, etc. Your application should include a detailed and a convincing hardship letter, which is usually a key factor for a successful application. Moreover your application should illustrate your capability to manage the newly modified payments from now on. This is usually done by presenting proof of current and future expected income plus a financial statement illustrating your expenses, which will help the lender estimate your ability to make the modified payments in time.

Another question that people usually ask is whether they should already be delinquent on their payments in order to qualify for a loan modification. According to President Obama’s new Home Affordable Modification Plan lenders will be provided with a special bonus if they succeed in reaching out homeowners before they fall into default. Thus, the sooner you apply for a loan modification the more mutually beneficial it will be for both parties.

Next, when considering a loan modification most people want to know if the process would prevent foreclosure. The answer is positive. Stopping foreclosure is the main goal of the process. The newly modified payment solution is specifically tailored to your income and expenses in order to aid you in your loan payments and stop foreclosure. Moreover if you already have some missed payments the modification plan will help add them back into the newly structured payment system and spread out over the term, thus allowing the loan to be brought current.

Finally a crucial dilemma that needs to be faced and solved before deciding to apply for the process is whether you should manage it by yourself or introduce a third party representing yourself. The answer to this is based on individual preferences, however regardless of your choice you should first of all become aware of the in and outs of the whole process and then only decide. If you decide in favor of the latter and need help or more information about third parties that can represent your interest at best go to http://www.1stforeclosureprevention.com.
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Source:1st Foreclosure Prevention
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Tags:1stforeclosureprevention, Foreclosure, Prevention, Properties, Real Estate, Mortgage, Loss Mitigation, Save Home
Industry:Foreclosure
Location:Huntingdon Valley - Pennsylvania - United States
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