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2011-11-11 19:01:52

Get a Loan Modification while Current on Mortgage Payments

Loan modifications are not just for homeowners who are late on mortgage payments or facing foreclosure. Most homeowners are under the assumption that a borrower must be behind on mortgage payments, in order to get approved for a mortgage modification. A loan modification was a way to change the terms of an existing loan in order to help the borrower stay in the home if they had suffered a hardship or couldn't refinance. However, with the help of the Federal Government, many homeowners who are still current on their loans, but struggling in some way are now granted the same opportunity.

A loan modification is not a new mortgage, it is the re-negotiation of an existing loan to bring about a lesser monthly payment, bring the loan current if the homeowner is behind, or bring the home out of foreclosure. Credit scores are not a part of the process. Thus, a homeowner can apply for modification even if he has bad credit and especially if he's facing foreclosure proceedings. Applying to modify your loan opens the door to full negotiations and revisions of the current terms, which has truly become the best solution for homeowners attempting to save the home or lower the monthly mortgage payment to make it more affordable.

Getting approved for a mortgage modification is not as easy as one may think. The media is pushing for homeowners to deal directly with their lenders, when attempting to get approved. The problem is that most of the major banks are completely overwhelmed with the amount of homeowners seeking assistance at the same time. The banks have so many requests coming in at once that they simply cannot process them fast enough, which lead to lots of homeowners getting denied. The banks are not able to help homeowners the way they deserve but that leaves an opportunity for borrowers, who are willing to do their own loan modification.

Homeowners, who are struggling to afford the monthly mortgage payment because their financial situation changed for the worse, should educate themselves before attempting to apply for a loan modification on their own. Putting together the loan modification package should be done as thoroughly and accurate as possible, to ensure a faster process, as well as increase your chances to get approved. There is a lot of good material out there that will teach borrowers how to properly fill out the forms, do the proper calculations with your income and expenses, and teach you how to deal with your lender.

Struggling homeowners that do not want to fall behind on the monthly mortgage payment, should learn how to get approved for a loan modification. They should then submit the claim to the lender before they are late on the payment. It is strongly recommended to learn as much as possible about the loan modification process and procedure before applying with your lender.

 

To find out how you can get more educational material regarding loan modifications and services please visit: http://www.loanmodificationmanagers.com/cat1/process.html You can also call 1-800-896-3125 for a free consultation.

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