How to Get a Loan Modification?
Loan modification has come to ease the financial hardship of borrowers. It alters the original mortgage agreement existing between the lender and borrower who is also the owner of a house. A lender would only modify a loan if the house owner is able to prove that he is suffering from financial hardship and cannot make his mortgage payments due to this reason. After he is able to do this, the lender would modify his loan by reducing the rate of interest, lowering the mortgage payment or extending the term of the loan. House owners could contact their banks and negotiate on the modification process they desire.
Now the next question is how to modify the loan. When you want to get a loan modification, you have to contact the bank you got the loan from and inform them about your desire. Before the loan modification is granted to you by the bank, you would still have to fulfill certain requirements.
For you to be granted for a loan modification, you must prove that you are going through financial hardship and cannot make your mortgage payments at all. Examples of financial hardships that could be considered by banks include:
- Job relocation
- Curtailment of income
- Military duty
- Marital separation or divorce
Loan Modification Company
After it has been identified by your lender that you are experiencing financial hardship, they could offer the following 3 things:
- An analyst would get a forensic loan audit to look at the documents to find out if you broke the law during the originating process.
- A loan modification attorney can help analyze your financial situation in order to determine the chances of you getting a loan modification.
- A loan modification attorney could negotiate with the bank on behalf of you.