Its not shocking that the number of people looking for a mortgage loan modification has jumped greatly. The world is facing a time of tough economic times with the biggest debts in history and families everywhere are feeling the pinch. There is no denying the fact that there are millions of Americans struggling to survive and avoid losing their homes to foreclosure. Since foreclosure has been on the rise people have been looking for ways to keep their homes. Loan modification seems to be the answer to those questions. It is a pretty new program however it is very popular as a method to avoid foreclosure.

The loan modification program is popular due to the fact that your credit does not have to be great to be approved for the program. Since people are struggling good credit is hard to come by. Loan modification is better than the traditional refinancing because if one would like to refinance their loan their credit needs to be near perfect.

However because mortgage loan modification does not require near perfect credit it does have other requirements. The lenders that provide mortgage loan modification review many different factors in order to qualify someone for this program. One of the bigger requirements is the borrowers’ financial hardship. Anyone wanting to qualify for a mortgage loan modification must be in financial need and able to provide proof of their recent hardship. Having more debt than money is considered a hardship, loss or decrease of income also qualifies as financial hardship.

Financial hardship is one of the requirements although there are various other requirements in order to qualify for a mortgage loan modification program. Some other requirements include the owner’s payment history, time’s value and other various factors play a part in qualifying for a mortgage loan modification. Find a lender and ask them what their requirements are for a borrower in order to be approved for a loan modification program. The lenders usually have to problems when asked the requirements because they won’t need to weed out those that do not qualify.

Although there are different requirements to meet prior to being approved it is not the hardest step in the process. The actual application is highly intense and it has to be completely mistake free and 100% accurate. Any mistakes will delay the process and make it more difficult and any false information will call for immediate disqualification for the loan modification program. Be aware the lenders do research each application looking for false or misleading information.

Along with the application you will need to provide the lender with a financial hardship letter explaining your current financial difficulty. While writing the hardship letter you may be tempted to make your situation a lot worse than it actually is, however make sure not to go overboard because the lenders will fact check. Any person that is caught lying will be disqualified from the program.

Once the application process is complete it can take eight weeks to be approved for the mortgage loan modification program. As long as you meet all of the requirements that are needed for the loan modification program you should be all clear even though the 8 week long wait may make you nervous. There have been cases where the lenders denied a homeowner because of unexplained reasons, so if you are one of those people make sure to ask them the actual reason so you can try to fix the problem. The loan modification process can be long and stressful however if you are calm and patient the end result will be worth while.

-M Petrone
www.RefinancingCondo.com

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