Archive for February, 2012
Mortgage loan modification – When does it lend out a helping hand?
February 7th, 2012 | 
Author: Everybody goes through financial ups and downs at some point of time or the other. It becomes especially difficult to make regular payments on your mortgage, when you’re trying to make your ends meet. A mortgage loan modification program might be able to help you at this point.
When you go for a mortgage loan modification, you only ‘modify’ the terms of your existing mortgage to suit your present means. A modification is however completely different from a mortgage refinance. A refinance means a new mortgage loan, while a loan modification only alters the terms of your present mortgage.
When can you opt for a mortgage loan modification program?
A mortgage loan modification program will come to your aid when you face adverse financial situation. It can be arranged when you have missed multiple payments on your home loan. You can lower your monthly mortgage payments, or change the loan time period or the interest rates on the mortgage with a loan modification.
Eligibility for a mortgage loan modification program
The mortgage lenders only allow a modification of your loan terms, if you fulfill certain criteria. You can qualify for a mortgage loan modification program when:
You are experiencing financial difficulties or a change in financial circumstances. You’ll need to present that in a documented format.
You have missed the monthly mortgage payments for 3 months (90 days) or more.
You are the owner of the property and use it as your primary residence.
You have not filed bankruptcy.
The mortgage lenders provide the Home Affordable Modification Program (HAMP) to the delinquent borrowers. However, the eligibility measures for HAMP are separate. A mortgage loan modification helps to reduce the risk of losing your home. Make use of the option with careful consideration.
