In today’s struggling housing market there are hundreds of people falling behind on their monthly mortgage payment and now possibly facing foreclosure, are you one of them? If so there is a way out from the burden of possibly losing your home to foreclosure, loan modification. Below are some tips that will help stop foreclosure and bring some piece of mind. Knowing what to look for and what to expect is important to stopping the foreclosure of your home.

First of all in order to get approved and use a loan modification you must know what requirements must be met. The requirements that are needed are not difficult to meet and most struggling homeowners meet them. In order to qualify for a home mortgage loan modification you must be using 31% or more of your monthly income towards your mortgage. This 31% includes property taxes, homeowner dues and insurance. Along with using 31% of your monthly income for your mortgage, you must also be suffering some financial hardships. A financial hardship can be anything from sudden loss or decrease of income to medical emergency in order to qualify for a loan modification.

What you must also understand is that a loan modification actually means that you are taking out an entirely new loan. This new loan will have lower interest rates which lead to lower monthly payments that are more manageable. When getting a loan modification lenders will use your monthly budget to insure you will not default and make your monthly payments with no problem. Lowering your payments, lowering your interest rate and possibly extending the length on your loan will help your get back on track and ensure you do not lose your home to foreclosure.

Last thing you should know when thinking about applying for mortgage modification is that you can receive advice from a professional for free. There are many companies out there that will try to change people thousands of dollars for a consultation but this can be done online for free. All you would need to do is complete a form with some basic information and you will get a phone call within a couple of days with helpful advice that will help you stay in your home and not fall a victim to foreclosure.

Facing foreclosure is a homeowner’s worst nightmare and the reality of it is that there are hundreds of people in danger of it. It is not to late, look for a lender that will help you keep your home and get back on your feet.

-M Petrone

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