Tag: Home Loan Modification

If you’re one of the many homeowners hit by the economic crash, chances are you’ve looked into refinancing, short sales, and other ways to help you get back on track. But if you’re in serious default or are at risk of losing your home, your best bet may be a home loan modification. Also called a mortgage modification, this process involves negotiating with your lender for more comfortable mortgage terms. The government has launched a home loan modification plan, known as Home Affordable Modification Program, designed to help troubled homeowners get better terms.

Each lender has a different standard for granting loan modifications, but the general requirements are pretty much the same. Below are some common cases that may make you eligible for a home loan modification.

Financial hardship Maybe you lost your job, got divorced, or had to pay emergency medical bills. These are all valid reasons (especially in this economy) for falling behind on your mortgage. Note that to qualify for a loan modification, the hardship has to be temporary and you have to have sufficient income. Provide bank statements or financial documents to show that youll be able to keep up with the modified loan.

Adjustable-rate mortgages A lot of today’s home defaults can be attributed to adjustable-rate mortgages, most of which were issued during the sub-prime boom between 2004 and 2007. Once the teaser period ended and the rates reverted to normal, many homeowners found themselves unable to keep up. The government’s home loan modification program allows these homeowners to return to comfortable mortgage terms, so they can avoid foreclosure and save their credit.

Falling home values Many people have found themselves unable to refinance because their home values have fallen, sometimes to a point where they owe more on the home than it’s currently worth. However, decreased home value alone won’t qualify you for a home loan modification, as home values are expected to rise and fall during the life of the loan. But combined with other factors, a decreased value can certainly increase your chances.

Lending violations Sub-prime lenders have been found to violate a number of laws on fair lending, and you can use this to your advantage when applying for a Home Loan Modification. Have a qualified loan modification attorney review your case and see if there are any violations you can use for leverage. With an experienced lawyer, you can negotiate more strongly with your lender and come out with a much more agreeable deal.

Home Loan Modification allows defaulting borrowers to work out new terms with Countrywide, so that they can avoid foreclosure and stay on track. Countrywide began offering the service through their Home Retention Department at the height of last year’s real estate bubble. However, due to the volume of requests coming in, many cases were delayed and resulted in foreclosure. The company hit an all-time low in 2008 and was recently bought out by the Bank of America.

In line with the change, the Loan Modification Department of the Law Offices of Marc R. Tow is also taking measures to protect its clients. The firm, one of the leading loan modification services in the country, will only negotiate modifications with Countrywide for clients with viable cases and those who are in serious financial trouble. Changes are also expected in national Loan Modification policies. While loan modification is still open to borrowers not in default, new laws may soon limit the service only to those in bankruptcy or serious delinquency. This will allow lenders and loan modification companies to focus their attention to clients who are most in need. The firm will continue to help clients with loans serviced by other companies. Besides loan modification, the Law Offices of Marc R. Tow also offers assistance with loss mitigation alternatives such as short sales.”>Homeowners hoping to get a loan modification with Countrywide may want to rethink their options. Countrywide Financial, best known for excessive lending practices that led to widespread defaults, now has so much bad debt on its books that it may have to tighten up its loan modification service.

Home Loan Modification allows defaulting borrowers to work out new terms with Countrywide, so that they can avoid foreclosure and stay on track. Countrywide began offering the service through their Home Retention Department at the height of last year’s real estate bubble. However, due to the volume of requests coming in, many cases were delayed and resulted in foreclosure. The company hit an all-time low in 2008 and was recently bought out by the Bank of America.

In line with the change, the Loan Modification Department of the Law Offices of Marc R. Tow is also taking measures to protect its clients. The firm, one of the leading loan modification services in the country, will only negotiate modifications with Countrywide for clients with viable cases and those who are in serious financial trouble. Changes are also expected in national Loan Modification policies. While loan modification is still open to borrowers not in default, new laws may soon limit the service only to those in bankruptcy or serious delinquency. This will allow lenders and loan modification companies to focus their attention to clients who are most in need. The firm will continue to help clients with loans serviced by other companies. Besides loan modification, the Law Offices of Marc R. Tow also offers assistance with loss mitigation alternatives such as short sales.

Are you having problems with your mortgage? Then a home loan modification maybe the answer to all your problems. However, there are a lot of factors that could affect your chances of getting a mortgage modification. This article will be showing you some of the things that will surely increase your chances of getting a mortgage modification. These techniques were done by a lot of people who are now enjoying a life free from mortgage.

It has been said that home loan modification programs are the best way to deal with mortgage problems, but how can you utilize its advantages if you cant get it approved? Although everyone can apply for a home loan modification, you need to understand that your chances for getting your application approved will be increased if you are in one of these situations:

– If you are currently or had experienced a major illness, causing you to lose your job and your capability to pay off your mortgage. An applicant in this situation will most likely be approved since he no longer has the capability to pay off his mortgage any time soon.

– If your employer cut your working hours or your overtime hours were removed, you are also eligible for a home loan modification. However, there are some applicants who were rejected even while under this situation because they are already paying an amount lower than their debt to income ratio.

– If you had experienced a life changing event such as having or adopting a child, which further increases your monthly expenses, making it harder for you to pay your mortgage.

These are the situations that will greatly increase your chances of getting a home loan modification. It doesnt mean that your application for this method will be rejected if you are not in these situations. There are a lot of other factors that will affect your application. Always remember that there are a lot of ways that you can do to fix your mortgage.

You can use the Internet and look for online companies who can help you apply for a home loan modification. These companies also offer free online quotes that will help you further assess your financial status, and will help you determine whether you have great chances of getting a mortgage modification.