The mortgage modification process is relatively easy, although sometimes it may look confusing or difficult. With a home loan modification, a homeowner can save their home from foreclosure, save money every month through reduced interest rates, or alter the terms and conditions of their existing home loan in order to meet their financial needs.

How a homeowner can Qualify for a Home Mortgage Modification:

-The Home needs to be you primary residence.
A home mortgage modification is only for homes where the owner actually lives in as a primary residence. A loan modification is not for second homes or investment properties. Actually, odds are, if you do own another home or investment property you will have a hard time being approved for a home loan modification.

-Allow the bank or mortgage lender fill access.
This means that when you are in the home loan modification process that you should be completely open with your financial records, investments, and other sources of income, as well as debt. This is critical information when that is used to determine your final mortgage rate, terms, and conditions and can mean the difference between a huge savings or potential loss. Do not try to overestimate your income or artificially inflate your earnings as this will come back to haunt you. Cheating the system will always catch up with you in one way or another.

-Results you can expect from a Home Mortgage Modification
According to new mortgage modification standards set by President Obama, homeowners who are approved for a loan modification will have to pay no more than 31% of their gross monthly income towards a mortgage payment. A lot of homeowners pay 50% or even 60% of their current income for their home loan, and the savings from a 20% bill reduction would be enormous.

Depending on the bank or mortgage lender you are working with, different paperwork may be required . Do not ever think you are stuck in a corner or as if you are asking for a hand out. You are just a regular customer. The mortgage lender or bank gets a commission for working with homeowners who are in a “Financial Hardship” and they are happy to work with you in order to keep you in your home and avoid the hassles of foreclosure. Modify your home loan now and see the savings start next month.

-M Petrone

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