Lenders and banks play on peoples fears and make mortgage modification either way to easy to be real or extremely complicated. Aside from the basic information that you will be required to provide like your name, date of birth and social security number the rest of the mortgage modification process is quite simple.

Mortgage Modification How to Qualify

1. The home needing mortgage modification must be a primary residence.
Those who want to modify the mortgage of a second home, vacation home or holiday home will not be able to do so using this plan. The mortgage modification plan was enacted for primary residences only. In fact those who own a second home or any other properties of any kind will not receive help from this mortgage modification plan.

2. Be honest with the bank and lender.
The banks and lenders will require some personal information and financial records when looking for a loan modification. It is extremely important to be as honest as possible when giving this information to the banks and lenders. It is used to determine your new policy and lying can only make things worse. If you are caught in a lie you may be disqualified from the program altogether.

3. Be prepared for 30% of your income to go towards your loan.
It is the national guideline for newly modified mortgages calls for 30% of the borrowers’ income. Although this may seem like way too much if you carefully think about it you are probably paying more than this with your current loan.

All banks and lenders operate differently and will require different information more or less. It depends on the company and what their requirements and confirmations they need. Always keep in mind that they are providing a service and you are a customer not a charity case. Do some research and find the lender or bank that you can best work with. Also remember that asking for a quote from a bank or lender is not an agreement of any kind and you don’t have to sign anything that you don’t want.

If possible have a experienced legal professional to look over any potential agreements. It will be worth the money just for the piece of mind. They can look for any sort of loop holes that they are and any unnecessary fees. If you are not comfortable DON’T sign anything.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner