There are many reasons other than the threat of foreclosure to look into obtaining loan modification. Perhaps one has expensive medical bills or there has been significant damage done to his home. The following will delve into how and where to get a loan modification to enable everyone to understand its availability.
Phoenix, AZ -- (SBWIRE) -- 02/12/2013 -- Complications from a simple surgery ended up keeping the patient in the hospital for weeks. The bills following this experience nearly drove him to panic. Then the idea was suggested to him to apply for loan modifications with several lenders to see if he could qualify for one. He was confused when he heard this idea; wasn’t loan modification something one did to avoid foreclosure? Well, yes, it can certainly help with that situation. It can also provide much-needed funds for high medical bills or to repair damage to one’s home not covered by home insurance. Too, if some sort of financial hardship suddenly develops, it might be a good idea to get a modification. When the situation is one in which one’s home has negative equity, which is the house is worth less than the amount of the mortgage, loan modification can help. Other reasons to get a loan modification are if the original loan was a sub-prime one and, of course, if the lien holder is about to foreclose.
Know More about New Loan Modification Qualification Guidelines
Loan modification entails having changes made to one’s original mortgage loan. These changes may include cutting down the interest rate, lowering the principal of the loan, or giving some extra time to repay it. The first place to go when beginning the search for a reasonable modification is to one’s current lien holder. Many banks, credit unions, and other financial institutions have in-house programs to make appropriate changes to a mortgage loan. If they do not have one, look around to other local lenders. The federal government also has some plans available to help struggling property owners. The Home Affordable Modification Program, known as HAMP, offers a few types of assistance besides loan modification. Its modification program is relatively easy to apply for; simply go to a participating lender and fill out the paperwork. When going to apply, be sure to have proof of financial hardship, income documentation that indicates the ability to handle the modified payment, and the original loan documents showing that the loan was obtained on or before January 1, 2009. Meet all other eligibility requirements, talk it over with the participating financial institution’s representative, and wait for a finding. If one is denied HAMP assistance, the FHA may be able to help.
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