Delinquency Is Not Required for a Loan Modification
People always think that in order for their mortgage loans to be modified they need to be substantially behind on their payments for these loans
. However, this is anything but the case. Most mortgage lenders around the United States are allowing people to work with loan modifications even if they are not delinquent on their loans. This is provided that a few standards are met.
Lenders can offer loan modifications to people who are going to experience financial hardships in the future. This means that a person who can get a modification can be someone who is already able to afford one's loan. However, that person will not be able to afford it for too long. The person is going to end up dealing with some kind of financial hardship that will end up making it hard to get the home paid off.
The hardship that is involved can be all sorts of things. Sometimes it can involve future medical expenses while in other cases it can involve a person about to be laid off. The main thing is that the hardship is something that was not completely one's fault.
A loan modification can also work if a person can prove that upcoming changes in market rates or other market conditions can cause a new difficulty in paying off a mortgage. This is provided that a person is able to provide details on all of one's assets and expenses. The lender is going to want to see that someone can actually be unable to pay off a mortgage in the event that the market rate does go up and the monthly payments on the loan become more expensive.
The goal of this process is that it is used to convey to a lender that the loan that one has is not going to be affordable later on in time. This is despite the loan being affordable as it is right at this particular moment.
This part of a
loan modification is useful because lenders are willing to actually go ahead with this type of plan. The last thing that a lender is going to want to deal with these days is another person getting into a foreclosure on one's home. The losses that can come from a foreclosure along with the bad image that a lender can develop can be dangerous for a lender. This is why it will help to get a good loan modification handled before one actually needs it. A lender is wiling to help a person to be prepared for when some kind of financial hardship does actually come by.
Be sure to take a look at this part of getting a loan modification. A good loan modification can be used on one's home even in the event that one is not in delinquency on one's modification. This is all as long as the person who applies for a modification can prove that a person could end up being delinquent if a modification is not granted.
For expert advice and tips about applying for a free Loan Modification, please visit
http://www.1stforeclosureprevention.com.
Delinquency Is Not Required for a Loan Modification
By: ketty
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