Loan Modification - Important Information To Get You Started
When you are facing a possible foreclosure, the last thing you want is another misleading
plan of action that results in little to no financial help for you. Fortunately, loan modification options do not fall into this category. Before you investigate too far into the process, you surely want to grasp as much information about the term as you can. What a loan modification is exactly is a permanent change to a term or several terms in your home loan agreement. It allows a loan to be reinstated, resulting in a lower monthly payment you can afford. Obviously, with this basic definition, it is possible to use loan modification to save you from foreclosure!
The United States government is very aware of all the financial hardships of the country. For this reason, they have laid out plans for government programs to help you obtain a loan modification. $75 billion dollars have been set aside to allocate to subsidized lenders who are willing to work with borrowers to modify their loans. This in effect gives banks a financial incentive to help you stop foreclosure. Plus, if you pay your newly modified payments in a timely manner, you will become qualified to earn up to $5000 in credit toward the loan balance!
To find out if you are eligible for a loan modification, the first thing your lender will consider is your ability to make a modified payment currently as well as in the future. You must have proof of income and complete financial statements with details concerning your income to expense ratio, proving your monetary incapability of making your current loan payments. This proves your need for a modification and hopefully your capacity for paying the modified amount should you be granted your request. You do not have to already be delinquent on your payments to qualify, as part of the purpose of the government plans is to help borrowers before they fall behind.
If, however, you have fallen behind and missed payments, you can of course also qualify. Your missed payments can be added back into your loan modification in a dispersed manner, spreading the missed payments out over the term in order to bring your loan payments current. Getting started and working out the details concerning your possible loan modification option is easy. What you need is unlimited information to help you fight foreclosure, and this is a great start to get you down the road to financial freedom.
by: Troy Truman
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