July 14th, 2009
Are you eligible for a loan modification?
Every lender has different criteria for the loan modification requirements. This is a moving target and so can be your situation. One day you have a job to show you can afford the mortgage and the next day, you no longer have a job.
The main things the lender will look at:
1. Can you pay the mortgage now but not the past due?
2. You will have to show documentation that you have a job or proof of your income.
Is there equity in the house?
3 If you bought your house within the past 3-5 years, most likely it has gone
down in value. You want to know what the market value is on the property.
What are the terms of the existing mortgage?
They look at the subprime loans first since they are the most defaulted mortgages and they don't want to take back more properties.The bottom line is, they want to know when they can start seeing payments coming in. They will want documentation of all the paperwork that is needed to prove your income. If you are self-employed, you will need to provide tax returns and profit & loss statements.
They will want to see what your monthly income and expenses are. You can disqualify yourself if you don't do this correctly. They will also want to know what was the reason for you to fall behind. Well this can be easy for challenging for some people to put on paper. If you don't know how, you need to learn.
Some people think that if you are a landlord, you don't qualify for a loan modification. NOT TRUE! I have gotten loan modifications rental properties. There is a special way you will have to structure it to qualify for the loan modification.
There are some programs you will not qualify for a loan modification. The Obama plan that everyone is talking about is focused on the owner occupied properties and not for the landlords who have properties. Go to your lender's website to see if you are eligible for a loan modification with them. Keep in mind, the programs change daily so if you get a NO today, you may get a YES tomorrow if you are persistent!
After reading this Blog report, I visited Modloancenter.com and they were sure helpful. Looks like I'll be keeping my home.
ReplyDeleteThanks ModloanCenter.com. You guys are the best.