June 18, 2024

Jocuri

Mad about real estate

Mortgage Modification Program – 3 Steps To Approval!

If you are thinking of trying to get a mortgage modification but are worried about being approved, you have come to the right place! There are many mortgage modification programs available right now. Deciding which one is right for you and how to take the correct steps to get approved can be overwhelming.

The current housing crisis is sending millions of homeowners scrambling to get their loans modified. Standing out in that crowd and getting your application to the top of the approved list is a challenge! Extensive research has shown the following 3 steps will give you a much better chance of being approved for a mortgage modification program!

1. Proving your financial hardship. One of the first things lenders look at is why you are in this position, what happened? It is imperative that you explain your current financial situation clearly and understand what qualifies as financial hardship. Some of the situations that WILL qualify are:

a. Divorce

b. Death of a family member

c. Job Loss

d. Income reduced

e. Substantial medical expenses

f. Military service

These are acceptable reasons for a financial hardship. Keep in mind that losing equity in your home due to the housing crisis is not an approved hardship for mortgage modification programs.

2. Proving that you can afford a new modified mortgage payment. This will require that you create 2 separate budgets. The first should indicate your current situation. It should show that your mortgage payment (including taxes, insurance and any homeowner dues) is MORE than 31{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of your gross monthly income. The second budget should prove that a lower mortgage payment will be less than 31{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of your monthly gross income and you can afford it. Remember that you must have disposable income left over on your new budget in order to prove you can afford the lower modified payment. (Show that you have cut out some expenses such as movie night, or eating out, or lessened the amount spent on clothing).

3. Review – Review – Review. One of the biggest reasons that people that need a loan modification get denied is because they did not fill out the forms/application correctly or completely! Remember, once you submit your financial information, you cannot make any changes! This is a one shot deal; you don’t get a second chance! Take the time to review the instructions and then go over all of your paper work as many times as necessary to ensure their accuracy!

Following these tips will certainly increase your chances of being approved for a mortgage modification program. This could be your only chance to save your home! It’s worth taking the time to get all of the information and do your homework.