When you hear the term mortgage modification you may cringe at the thought. Some banks will make you believe qualifying for one is a difficult lengthy process, and some may have you thinking it is a piece of cake. The reality is the process is pretty standard.
How You Can Qualify For a Mortgage Modification:
1. The mortgage you own has to be a primary residence.
If you own any other type of property, i.e.; investment property, holiday home, second home, etc. Chances are you may not be able to receive aid through the mortgage modification program. The mortgage you request help with will have to be the home you live in.
2. Be honest about your finances.
Attempting to hide a part of your income will actually not do you any good when it comes to mortgage modification. The guidelines they have in place are there to help you in your current situation. So being truthful is an important part of forming a new agreement with the bank.
3. Know that 30% of your income goes to your loan.
The new national guideline for negotiating mortgage modifications is about one third of your monthly income. It may seem like a lot of money but in reality you are probably paying much more than that now. One thing to be aware of is hidden administrative or legal fees.
Do your research. Some banks will require more information than others, they will have varying interest rates and time frames. Never feel as though your the underdog in this game. You are the customer and the government gives them commissions to sign your new loan. Always know that the ball is in your court and that don't let one bank trap you into a loan that your unhappy with. Make sure to do some shopping for the best mortgage modification for you.
You should have a person with legal expertise with you to go over the new loan to make sure that there are no hidden fees. It might even be worth it to hire someone for an hour just to ensure there are no loop holes and paying a hundred for their time could save you a few thousand dollars on your loan. Always remember that it takes two to sign a contract and if your unhappy you don't have to sign.
Click here to learn how to get qualified for a
mortgage loan modification plan .
