With the housing market in such crisis it is not surprising that the need for mortgage loan modification is on the rise. We are going through a tough economic time and are faced with the biggest debt in history and families everywhere are feeling the pressure. The average citizen all across America is struggling to stay afloat as our national debt continues to grow. Mortgage loan modification can be the answer to relieving some stress. Although the concept of mortgage modification is a relatively new idea, it has gained popularity as a method to avoid foreclosure.

It has gained popularity because it does not require perfect credit for one to be approved for a mortgage modification. Since the economy is in such a rocky and unstable state it is very difficult to find someone with perfect credit. The traditional step that one would take would be refinancing however it is more difficult because it requires one to have near perfect credit in order to qualify.

Although mortgage modification does not require pristine credit it does have its own set of other requirements. The banks, lenders and other financial institutions will review different factors before qualifying someone for a loan modification. The biggest of those requirements is your financial hardship; everyone interested in applying for this would need to be in a state of financial hardship one way or another. Financial hardship can be described as having more debt than income and other circumstances also qualify.

Although financial hardship is a requirement for a mortgage modification lenders and banks will also decide based on the borrowers payment history, value of time and multiple other reasons. In order to know what the lenders are looking for you will have to get in contact with one of them and ask a few questions. Most lenders will be happy to help you because they can let you know quickly if you qualify or not and will save them time in the end.

The application may be the most vital and important step of the whole process. The actual application is intense and must be completed 100% accurately. If there is any false information either on purpose or by mistake it can call them to disqualify your application without question. Lenders and banks do look for errors or exaggerations.

The lenders will also require you to create a hardship letter that will explain your current situation. It can be easy to exaggerate while creating this letter but keep in mind that the lenders do and will fact check any reasons that you provide them with. If you are caught lying in the letter they will automatically disqualify you for the mortgage modification process.

Once you have completed the application process it can take an additional eight weeks for the mortgage modification application to be approved. It may seem like an eternity while you are waiting but as long as you are positive that you are a qualified candidate and you completed the application honestly and completely you have nothing to worry about. Although there have been instances where someone qualified was denied for the mortgage modification process because of unexplained reasons it is possible for the borrower to find out the reason from the lender. The mortgage loan modification process can be long and stressful but will be worth the work in the end.

-M Petrone
www.RefinancingCondo.com

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