Loan Modification Help For Dummies

It wasn’t long ago you celebrated the occasion of buying a new home. At that point in time you believed that all terms including the interest rate, the monthly payouts and the time period were just right for you. Now a few months down the line, you don’t believe so! Life is known to bring with it a good share of surprises, some pleasant and some not so pleasant. If your business goes bad, you may need to file bankruptcy. If you are a salaried individual, job security for example is not something you can promise yourself in today’s times. One day at work you may get a promotion or if you are not fortunate it may be a pink slip. Your world just changes in a day and so does the economics! Even pay cuts and changes in job locations can create quite a stir in your rather normal status quo. For homeowners who have just bought a new home and have a home loan against them, applying for loan modifications is sometimes the best solution for their new financial situation. Loan modifications are therefore a permanent change in some terms and conditions of the borrower’s loan and the monthly payment amount is made affordable for the borrower. Where can you get loan modification help? The Key Loan Modification Helpers. You can approach your lender for the loan modification application form but you need to note that you can modify your loan terms only once in a 24 month period. The lender needs to analyze whether you are eligible for the loan modification. Your Lender Agent checks on various aspects such as your household income, how much can be reduced out of the original payment amount, how much is the unpaid amount and how the new loan can be amortized over a 30 year period. In cases where the mortgager is unemployed however the spouse is employed and can help make the loan payments but is not the owner of asset, the lender will consult a legal counsel to check if asset qualifies for loan modification. Loan Modification Help For Free There are attorneys and legal counselors out there who can help you but loan servicers and lenders say that it would be prudent for a borrower who is struggling to pay the monthly payments, to seek help directly from lenders and non-profit housing counseling agencies approved by the HUD (housing and Urban Development) rather than attorneys who can eat into your cash reserves! However, attorneys do come into the picture when you want to file for bankruptcy to stop foreclosure or in extreme conditions when the loan servicer is delaying the entire process. Loan Modification Help-California To be eligible for loan modifications in California you need to be able to provide relevant statements and proof that you will have consistent income to cater to the modified monthly payment. The modified monthly payment must include the property taxes and insurance and must be 31% or less of your monthly income. The asset/house has to be your primary residence and you cannot be in a bankruptcy proceeding (unless advised by attorney) for you to be eligible. Lender may ask for you to get the asset appraised by a real estate agent. Sometimes the loan modification granted may be for a trial period of few months and if all payments are met then it would be made permanent. No fee can be charged for loan modifications as per the Senate Bill 94.As per rules from the Federal Trade Commission any mortgage assistance relief service provider is banned from collecting fees from homeowners until a written agreement is executed between the relief provider and consumer and it should incorporate the offer of mortgage relief obtained from the loan servicer. The State of California has done its best to safeguard your interests as a homeowner and it is now up to you to act in a prudent manner when you go about the loan modification process. Call A Fair Counselor For Fast, Accurate Answers To Your Loan Modification Questions. Call Now! (310) 321-1234