What is the Procedure for Loan Modification?
Here are te few Commonest queries of the readers about the Loan Modification Process.
- What is the Procedure for Loan Modification in New York State?
- Is there a certain amount of income that you have to make to qualify?
- what are the guidelines for a loan modification & are there reasons why someone would be turned down?
The above are the few commonest queries that readers ask me about the loan modification. Well, let me explain you how the loan modification works and what is the procdeure for getting approved for the loan modification?
Well, first of all loan modification means negotiating your mortgage loan terms with your lender. It can be anything from the below list.
- Reduction in the Interest rate
- Reduction in the monthly payment
- Deduction of Late payment fees and default charges
- Extension of the time period of your mortgage loan
- Reduction of the Actual Loan Principal
It can be a combination of one or more of the above. To get approved for the loan modification first of all you need to show some kind of hardship to your lender. The hardship can be anything such as loss of job, divorce, death, loss of income, business income loss, reduction in the salary or anything else which makes it difficult for you to pay your mortgage loan payments.
First of all you will have to submit the hardship letter to your lender. After that your lender will review your situation and may approve you for the loan modification program. There are several loan modification companies, brokers, attorneys and agents who can do this for you after charging thoussands of dollars from you.
However, you can do it by yourself in less than 60 minutes by simply downloading the 60-Minute Loan Modification workbook by California based Mike Rockwood.
Getting approved for the loan modification is not the rocket science. Anyone can do it by himself if you have the proper information about the process. Stay away from Loan Modification scams. Just Contact your lender directly and neotiate your mortgage loan with your lender directly rather than spending thousands of dollars behind the scams and fraudulent programs.