Foreclosure was bearing down on me and all I could think about was how to avoid it. I decided to modify my mortgage to stay in my home and protect my credit. Let me tell you, modifying your mortgage is not easy, but it’s much less difficult than losing your home and destroying your credit.
Before I decided to modify my mortgage, I thought there was some secret to how lenders handled loan modification applications. But the truth is each lender has their own formula to determine whether someone qualifies or not. Lenders look at..
- Value of the home
- Credit
- Mortgage payment history
- Bankruptcy history
- Employment history
- Income
- Debt to income ratio
To determine whether you qualify or not for their loan modification packages. It’s true that each lender has their own qualifications, but there is no secret to it. You can simply call them and ask, or even search on-line to find out for yourself.
If you’re not sure what I mean by”modify my mortgage,” I am referring to loan modification. Loan modifications are a way to reduce your interest to a fixed rate and possibly wipe away some of that principal. It’s not like refinancing, which is taking out another loan — Loan modification is simply altering your loan to make it easier to pay.
And thanks to the new regulations on loan modification set by Obama’s Home Affordable Modification Plan, getting a loan modification is much less difficult than it was in the past. That’s not to say getting one is easy, but it’s not impossible.
Under the new plan, lenders are encouraged to help homeowners avoid foreclosure, as opposed to just let them lose their homes. If you have thought about it in the past, or have been thinking about it recently: Now is the time to dive into the mortgage modification waters.
If you’re nervous or just don’t know what to do, there are officials under the plan who offer free help getting modifications to any homeowner who needs it. They not only give free consultations, but also free assistance and negotiations. This is the perfect chance for you to make real strides towards keeping your home.
I was confused when someone first suggested to me that I modify my bad credit mortgage refinance. It seemed like a lot of hassle for something that wasn’t even guaranteed. But if you can get your loan modification proposal approved and cleared, it can take a huge load off your shoulders and pocket.
Article Source: http://EzineArticles.com/?expert=Lindsy_Emery
