Loan Modification

Loan Modification

Loan ModificationIf you can’t afford your house payment, or are in foreclosure, then you should ask your lender for a loan modification. Many Florida Home owner are getting their modifications approved. However, it takes a lot of work.

A Loan Modification is a negotiation with your lender to renegotiate the terms of your loan and to reduce your mortgage payment. If you want to keep your home, then it is a good option and you will need to convince your lender to approve your modification.

You may qualify for a loan modification if you are at risk of near default. Has your income recently been reduced? Or, is your interest rate about to re-set to a level you cannot afford? In these cases, you probably qualify. This is true even if you are not yet behind on your payments.

To start the process, gather up all the necessary documents. You will need income documentation, all your mortgage documents, and copies of your monthly bills. You will need to present the lender a case on why they should accept your modification.

You generally qualify for a payment reduction if the house is your primary residence and your payment is more than 31% of your monthly income. Many lenders are accepting loan modifications. Here is the key, you must show your lender how it is beneficial to them to accept.

Many lenders will reduce your interest rate, or extend the term of the loan. Our loan modification kit has the information on how to make the argument.