March 30, 2010

Do I Qualify for a Loan Modification?

Posted in Loan Modification tagged at 12:17 am by demetriagraves

Are you financially on the edge? Just barely making the house payments by pushing off other payments? Is your house now worth less than what you originally paid?  You may qualify for a loan modification and it may be just what you need to balance the family books.

Outlined here are the key factors that you should know about loan modifications, especially in regard to what is needed to qualify.

1. Firstly, you must occupy the property, it must be your primary residence and it must be four units or less. Yes, duplexes and quads qualify, although most people applying have single family residences. The federal government is trying to assist home owners, not investors and they will verify the primary residence based on tax returns, utility bills, and credit reports.

2. To be eligible for a home modification, the first mortgage must have originated prior to Jan. 1, 2009

3. The current monthly mortgage payments must be greater than 31 percent your gross income, which means just about everyone qualifies on this point.

4. You’ll need to present evidence of a financial hardship, which is most often the loss of an income, but could be loss of overtime, furloughs, etc. Another point that isn’t hard for most people to prove.

5. To qualify for a loan modification your loan amount needs to be less than $729,750. The federal government wants to offer modifications on homes that are not considered excessive loan amounts.

6. Finally, the Making Home Affordable (HAMP) Program will end. The federal government’s current plan will be allowing for new borrowers to be accepted until December 31, 2012.

As you can see, MANY people qualify for a loan modification!

If you have further questions about qualifying for a loan modification, please don’t hesitate to contact me for a free initial consultation. I can go over your individual circumstances in more detail and help you work out a solution that is best for you.

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