Get your Free Do It Yourself Loan Modification Kit. loan modification kit includes everything you need to complete a loan modification on your own. It will teach you how to negotiate with your lender and most importantly what NOT to say to your lender. The secret to a successful loan modification is how you present your case to the lender. This DIY loan mod kit will explain the loan modification negotiation process in explicit detail. Visit our website for How to articles, mortgage calculators, free sample hardship letters, foreclosure timelines, and dozens of informative articles on loan modifications and foreclosure. Stop by to check out our growing library of free financial kits. We currently have bankruptcy kits, credit repair, and loan mod with more on their way! FreeDIYkits "Helping Homeowners Help Themselves"
The mortgage modification process can be very frustrating and complicating for homeowners who are not familiar with these programs. The first step a homeowner should take is to gather up as much information as possible. The key is to be prepared for every circumstance that may be thrown at you. Preparation is always key when successfully negotiating a mortgage modification. Below are 10 of the most asked questions regarding loan modifications:
What is a loan modification?
A mortgage modification is a permanent change of one or more terms on a borrows mortgage agreement resulting in reduced mortgage payments that the homeowners can now be able to afford.
Can My Lender Include Late Charges On My Mortgage Modification?
The new federal loan modification programs mandate that the banks waive any administrative charges, penalties, and late fees and when offering a mortgage modification.
How Will The New Government Programs Help Me Get Approved?
The Federal government has allocated $75 billion dollars in their new loan modification programs to give lenders and services a monetary incentive to offer help to qualified borrowers. In addition, homeowners who stay current on their newly modified monthly mortgage payments will be eligible for a $5000 credit on their mortgage balance.
How Do You Know If You Are Eligible For A mortgage Modification?
The most important requirement is that you can prove that you will be able to afford to pay your newly modified mortgage payments. You will prove this to your lender by supplying income worksheets and financial statements. It's very important to your lender that you do not default again on your mortgage payments because they would have just wasted all that time and money for nothing.
Do I Need To Be Late On My Mortgage Payments To Qualify For A Loan Modification?
Under the Homeowners Affordability Modification Plan, lenders will receive a special incentive for assisting homeowners who are not yet delinquent on their mortgage, but soon will be. The purpose of this plan is to help homeowners before they default on their mortgages. The burden of proof for proving that you can no longer afford your current mortgage payments seem to be higher for homeowners who are still current on their mortgage payments. The reason is lenders need to make sure they aren't spending the time helping a homeowner who is just looking to lower their mortgage payments for the hell of it...
What Qualifies For An Acceptable Hardship Situation?
Every homeowner has their own unique set of reasons that has caused them to be delinquent on their mortgage payments. For this reason, there is no set in stone answer to this question. The most common reasons for an acceptable hardship are: loss of job, single parent, reduced income, death in the family, etc... A compelling hardship letter is a very important factor for getting approved. Read our how to write a hardship letter article for more information.
Will a mortgage Modification Stop Foreclosure Proceedings On My Home?
Yes once your mortgage modification is finalized and your payments are now deemed current, the foreclosure process will stop.
Can The Balance Of My Missed Mortgage Payments Be Added In After My Loan Modification?
This seems to be a very misrepresented loan modification question. Yes your lender can spread the balance of your missed mortgage payments over the duration of your mortgage loan to bring your mortgage current. This can or cannot happen depending on what mortgage terms you negotiate.
Can I Do A Loan Modification Myself Or Should I Hire Someone To Do It For Me?
It all depends on if you think you have the knowledge to successfully complete a mortgage modification by yourself. There are many resources available to homeowners seeking to complete the process on their own.
How Do I Get Started On My Loan Modification?
President Obama's Homeowner Affordability Act offers real help for homeowners who qualify for the plan. All homeowners are encouraged to see if they meet the standards of this government mortgage modification program. While a large portion of struggling homeowners may not qualify for this plan, those who do will greatly benefit and save their homes.
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