Delinquent and distressed homeowners are seeking help to expedite the loan modification agreement process with their home loan lenders. A loan modification offers the borrower a long term solution to avert foreclosure by changing their current unaffordable home loan into one featuring affordable and sustainable monthly payments. A loan modification agreement typically includes a reduction in the interest rate, an extension in the loan term, a principal reduction or a combination of all three. Here are the most commonly asked loan modification agreement questions:
1. Who qualifies for a loan modification agreement? If you currently have an adjustable rate mortgage or a sub prime loan that you cannot afford, you may apply for a loan modification with your lender. Delinquent homeowners facing default or those who anticipate problems due to payment resets need to contact their banks loss mitigation department to ask about loan workout options.
2. If I am in foreclosure, can I still apply for a loan modification? Yes, you can and should contact your lender as soon as possible. Many lenders will postpone the foreclosure process while a borrower is in the loan modification approval process until a decision is made.
3. How do I apply for assistance? Contact your lender and ask for the loss mitigation department. They will usually send you a loan modification agreement packet to be completed and returned. Once the application is reviewed, a decision will be made to present a loan modification proposal for final approval by all parties.
4. Can I work my lender directly or should I hire a modification company? If you take the time to learn about your lenders guidelines for loan modification approval, you can do it yourself. If you do not feel comfortable attempting to complete the loan modification agreement, there are companies who will represent you with your lender for a fee. It is important to do your research first before paying anyone so that you have a complete understanding of what to expect.
5. Where can I learn more about loan modifications and if I might qualify? There is a lot of information online about loan modification agreements and your lender website will probably have some information as well. Many loan companies are advertising on the web, it is very important to get the most up to date and unbiased information you can so you will be able to make informed and wise decisions about your options.
The Federal government is advocating a systematic and aggressive lender outreach to homeowners facing default to offer loan modification agreements to help avert foreclosure. The FDIC is also encouraging lenders to offer long term sustainable modifications as part of the Hope Now coalition of bankers and government who are meeting to talk about how to best implement a large scale loan modification program to millions of homeowners.
The Complete Loan Modification Guide is a low cost, easy to read handbook that will give you all the unbiased and up to date information you need about loan modifications. You can order and download The Complete Loan Modification Guide right online and start learning how to qualify for a loan modification agreement with your lender. You receive all of the require forms along with detailed directions on how to complete them properly, instructions on how to compute your debt ratio, hardship letter assistance, your legal rights and much more. The Complete Loan Modification Guide will provide you with everything you need to prepare a professional and acceptable loan modification application. Order and download The Complete Loan Modification Guide today and get back on the path to secure home ownership.
By Susan V. GregoryLabels: About Loan, Tips and Hints |
