Two important part of a loan modification that your lender or loan service will want to know before approving your mortgage modification.
- The ability to pay and/or afford the new terms of the modification. If you don’t have a job or the income to support the new payment worked out by your lender, then they won’t approve the new loan mod. They will base this on your financial statement that they will request from you at the beginning of the process.
- A hardship that has happened to your or your family. This could be from several different experiences….loss of job (but now employed), death in the family, medical problems and so on. Lenders don’t want to see that you have been taking out new loans for new cars and trucks, they want to see a real hardship that has temporarily caused or permanently caused the inability to afford your previous house payment.
These two areas are important and you will need to look at them before appling for a loan modification and also you will want to make sure you are planning on keeping the home to live in. Find more information on loan modification at www.UtahRealEstateExpert.com
Todd Rodocker: Loan Modification and Foreclosure Prevention consultant.