There’s a simple answer to “Who qualifies for loan modification?” Here it is: Anyone with a provable financial hardship can qualify.

Phoenix, AZ -- (SBWire) -- 02/21/2013 --Credit-yogi.com has a great deal of knowledge to share with consumers about this topic, including:

- Defining Financial Hardship
- Qualifying Borrowers
- Where to Get Loan Modification
- Government Modification Programs

Definition of Financial Difficulty

Many, many occurrences in a person’s life can result in financial difficulty. Some answers to “Who qualifies for a loan modification?” are those whose household income has decreased due to illness or injury. People who have recently taken in an elderly parent and are having trouble supporting him or her also qualify as having a hardship. The loss of a job or a severe reduction in pay at the job one currently has can also cause difficulty in staying on top of the mortgage. Any happening that negatively affects the income of a borrower can be construed as a financial hardship.

Borrowers that Qualify

Going on the above definition of financial hardship, the answer to “Who qualifies for loan modification?” is anyone. A lawyer whose wife just lost her job, decreasing the household income qualifies. A waitress whose tips have suddenly decreased can qualify. A day laborer who can’t find work right now and is worried about losing his home may be able to get loan modification. Basically, people from all walks of life are able to qualify for modification as long as they have a provable financial difficulty.

Applying for Loan Modification

The next question to ask after who qualifies for a loan modification is where to apply for it. That’s almost as easy to answer: Go to any lending institution. Most banks and credit unions offer an in-house loan modification program, and there are companies set up expressly for this purpose. Looking online for lending institutions offering good interest rates is also a good idea. The federal government can also provide assistance, which will be discussed in the next section.

Federal Loan Modification Programs

“Who qualifies for loan modification?” was addressed earlier. Now, people need to know about HAMP (Home Affordable Modification Program) and HUD (The Department of Housing and Urban renewal) aid. Both of these loan modification programs are federally backed and have similar eligibility requirements. Some of these are having documentation of financial difficulty, having taken out the original mortgage on or before Jan. 1, 2009, and proving that the property is not condemned. Apply for HAMP or HUD assistance through any participating lender.

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About Credit-yogi
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