subject: Understanding The Loan Modification Process [print this page] Most folks don't know anything about the loan modification procedure. You need to remember that not every loan modification application is accepted by the lenders. They examine each and every application carefully and rejects or approves according to their findings. Most loan companies receive hundreds of loan modification applications daily and if any of those applications have errors, they will decline it right away.
Being a borrower, you should make sure your loan modification application is 100% correct. You have to demonstrate that with a loan modification, you'll be able to keep up with your payments. The loan company has to understand about your financial troubles and based on your application, they may grant modification of your loan.
Debt income ratio calculation is one critical thing to understanding prior to obtaining a loan modification. You can use free debt income ratio calculators online to understand your ratio. The ratio needs to be lower than 31%. If your financial situation is good based on this threshold, you have a much better chance to get a loan modification approval.
You also must put together a hardship letter for the loan modification process. The hardship letter has to be included with all of your other loan modification docs. In this letter, you should explain your reasons for being behind on payments and how you plan to correct the circumstances.
To let the loan provider know about your financial troubles, you have to include your earnings and expenditures with the loan modification documents. It will help the loan company choose the right decision on your application. Make sure to include all monthly expenditures, including cell phone expenses, cable, internet, etc.
To simplify the loan modification process, you could hire a loan modification expert. You can find many firms specializing in loan modification help. Select a reputable service for fast and guaranteed approval of your application.
by: Andrew P. Robertson
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