The recession has impacted everyone all around the world and has had a large negative effect on the housing market. Since the housing market is in such crisis it does not come as a big surprise that mortgage loan modification has become more popular as a solution for their financial difficulties. There are thousands of homeowners that are struggling to make ends meet and many of these same people are in danger of losing there homes to foreclosure. As people lose their jobs and struggle to find a solution to their money problems out national debt continues to sky rocket. Mortgage loan modification can be the answer and the path to relieving some of the daily stresses. Mortgage loan modification is a newer concept for homeowners but because of the recession it has gained some popularity.

Our current state of economic crisis has hurt many people and dropped their credit ratings. Since getting a mortgage modification loan does not require one to have a perfect credit rating many people are able to get approved for this type of loan. Most times when one finds themselves struggling to keep their homes they would turn to the refinancing option. The problem with the refinancing option is that it requires homeowners to have an almost perfect credit score. Since there are very few with those qualifications mortgage modification is more of a realistic move to take.

Although mortgage modification loans will not demand a perfect credit rating it does come along with its own set of requirements. When you go look into this option you will need to find a lender, bank or other financial institution that offers mortgage modification loans. Prior to getting approved they will need to check a few requirements that would need to be met. The most important of these qualifications is the financial hardship. Whomever applies for this loan option would have to be in a state of financial hardship in some sort of way. What being in a state of financial hardship means is that ones debt is much larger than their current income.

Lenders, banks and any other financial institutions will also make the decision based on the applicants payment history, value of time and various other factors. The only real way of finding out if you meet any of the requirements you have to contact a lender or bank to find out what they require. Overall most lenders and banks will be find with letting you know if you qualify or what you need in order to being the application process.

When you begin the application process you must be sure that all of the information that you are providing is accurate and everything is true. It can become intense but stay focused and make sure all the details are 100% correct. If you summit the application with any false information or any mistake it can be denied. Be aware banks and lenders will review your application throughly looking for false information or other mistakes.

Along with the application you will also be required to write an hardship letter. This hardship letter is used to explain your situation any why you need a mortgage modification loan. Although you may be tempted to exaggerate your situation and make it seem worse than it actual is you have to fight that urge. Lenders and banks are not dumb and will fact check all of your reasons you give them. They will deny anyone caught lying on their applications or in their hardship letter.

Once you are through with the application process it will take some time to find out whether you are approved. This step in the mortgage modification process can take about eight weeks to find out the results. This may seem like a long time but if you meet all of the qualifications and completed all of the paperwork properly you should be approved at the end of those eight weeks. If you are denied in the end you can contact your bank or lender to find out why exactly you were denied.

Facing foreclosure is stressful but if you take the time to apply for a mortgage modification loan you can be on your way to some financial stability.

-M Petrone

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