Are you one of the millions of homeowners facing foreclosure? Scared of the hassle and expense of needing to get a lawyer and having to go to court? Well, a mortgage modification can truly help a lot of homeowners get a better, more affordable home loan payment. However, there are some basic things which you should be aware of before starting the mortgage modification process, which I included here.

To begin with, there are two very minimal and basic requirements which must be met before you are able to get approved for a mortgage modification to save your home. One of the requirements is that the monthly mortgage payment exceeds 31% of your monthly gross income. This total however does include all money relating to your mortgage. This includes things like taxes, mortgage insurance, home insurance, any any additional dues or fees you pay. The other major requirement is that you are facing a financial hardship of some kind. This includes things like loss of a job, reduced income, or hospital bills. Generally speaking though, homeowners who meet the first requirement will be able to meet the financial hardship requirement.

Your budget plays a big role in a home mortgage modification as your new loan rate, payment amount, terms and conditions are determined according to your income, expenses, and overall budget. Your home loan modification will be set up according to your budget, which helps ensure you are able to successfully make payments every month for years to come. Loan modification programs from the new Government bailout for homeowners are also a great way to save your home from being lost, and get your finances back on track.

A lot of mortgage lenders you are considering working with have easy to fill in basic applications on their websites which can give you a rough idea of how much you can save by getting a home modification with them. Check a variety of lenders, and find the best deal for you and your situation.

-M Petrone

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