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 is 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 allows to renegotiate the existing loan to bring about an affordable monthly payment, bring the loan current if the homeowner is behind, or bring the home out of foreclosure. A homeowner can apply for a modification even if he or she has bad credit and especially if he or she is facing foreclosure proceedings. Applying to modify your loan allows you to attempt to negotiate and revise the current terms. This 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.
The best way to educate yourself is this series of easy to follow along videos, that will give you everything you need to learn how to get a loan modification. For more information visit: http://www.loanmodificationmanagers.com/cat1/process.html.
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