Mortgage Loan Modifications

Are you stressed out with mortgage payments? Many people are worried about mortgage payments these days but homeowners should not lose any hope because mortgage loan modifications are here and they are here to stay. Mortgage loan modifications are a process much like mortgage refinancing. Even called modified refinance, this loan modification can help you change mortgage terms -designed to help every homeowner in the United States cope during a financial hardship.

There are homeowners who decide to apply for mortgage refinancing. This option is alright as well but getting another loan will not help you much because it is borrowing money to pay for borrowed money. Mortgage loan modifications compared to mortgage refinancing are a different breed because they can prevent homeowners like you from borrowing more just to pay off your mortgage.

Mortgage loan modifications are strongly recommended to anyone who owns a home and is going through a very difficult time. If you have not paid your mortgage for more than a month then you are eligible for a mortgage loan modification.

To apply for the said program, you would have to document your current financial circumstances. After securing that you would need a copy of your delinquency notice from your lender. A title of the property will also be required of you but if you filed bankruptcy already you will not be able to avail of a mortgage loan modification anymore.

To summarize the things that you need - one, you need a letter that states your financial circumstances, proof of income and of course a detailed monthly budget.

Getting a loan modification is not that hard for those who know the ins and outs of the business but it can be rather challenging for everyone who do not belong to the mortgage business. The first thing that you have to do is to go to your lender or to the one that currently holds your mortgage. If you do not know who holds your mortgage, look into your mortgage statement and see where you send your monthly payments to.

Many of us are a bit perplexed on why a bank will or would let anyone modify their loans. The bank modifying your loan is not some type of charity or an act of kindness because once you modify your loan -the bank benefits from it because they no longer have to spend a big amount of money for foreclosure proceedings. Loan modification benefits the economic situation as a whole as well so basically, the banks would prefer it that you have a roof to live in.

A lot of places offer Mortgage Loan Modifications. The Federal Housing Finance Agency for example has a loan modification project while the US Treasury can assist homeowners in getting a loan modification. Apart from these government agencies, large banks and some small ones across the US also provide aggressive mortgage loan modifications. Some of these financial institutions even issue moratoria i.e. delaying the foreclosure. 

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