Question #1:How can a loan modification can help me?
Answer:By getting a loan modification,the terms of the loan will be modified.Thus there could be reduction in the interest rate or the lender might cut a part of the principal owed by you.The term of the mortgage can also be extended to a longer term which can go a long way in easing the mortgage monthly payments
Question #2:Will i get the approval easily?
Answer:There are many applications received everyday.Moreover not everyone qualify for these modifications.But if you meet all the requirements and also submit all documents,you will be in a great position to receive the modified mortgage.Never give it up without trying.After the stimulus plan was introduced and the government has started giving the incentives to all who prefer the modification instead of a short sale or foreclosure,the approval rate has gone slightly higher.So do not miss this opportunity to save the home.
Question #3:What are the requirements for loan modifications?
Answer:The major requirement to get approved is you need to show the lender that you will be able to pay the modified mortgage.So if you have a better debt to income ratio,you are sure to get accepted.Before going to the lender,ask yourselves if you will really be able to handle the modified mortgage.If you sincerely say yes then it means that you will be approved without no problems.
Question #4:Which is the important stage in the application process?
Answer:The lenders would be requiring you to give them a hardship letter.This letter would play a pivotal role in conveying all your current problems and your expected solutions from the lender.So you need to give a very well written hardship letter.This is the most important stage in the application process.
Question #5:What should i submit to the lenders?
Answer:You need to submit the following things to the lender in order to get fast approval:
- The hardship letter,
- All documents required by the lender,
- You can also submit additional things like the medical bills if you have been facing difficulties especially due to the illnesses.
Answer:After writing the letter and collecting all needed documents,submit them to the loss mitigators.Your application will be reviewed soon.Normally it would take more than two months.Some people have also got approvals more than this period.So you need to be very patient.
Question #7: Should i get professional help?
Answer:Since the application process is easy and there are lots of resources in the internet helping you,you can do everything yourselves.But if you are not prepared to take risks by doing everything,you can get professional help.But my suggestion is that all these things can be learnt by you easily if you spend some time in the internet.There are so many guides for you.
Question #8:Is the debt to income ratio important?
Answer:Yes!This is a very important factor in the approval process.This is because it will tell the lenders exactly if you will be able to make mortgage payments or not.