Eligibility For Home Loan Modification

Lenders have specific eligibility criteria which must be met to avail the benefits of a loan modification. The key features of the eligibility criteria are:

1. Prove your financial hardship

It’s imperative you state your financial circumstances are not favoring you, are out of control, and it’s very difficult to make your monthly mortgage payments. Various reasons such as loss of income or job, increased house hold expenses, medical bills, divorce etc can prove the financial hardship. A hardship letter states these reasons, and is crucial for your home loan modification application. A typical hardship letter generally contains 3 critical reasons or elements, and the letter should be convincing as well as compelling for the lender to consider it.



2. Debt-to-income ratio

You need to prove you can afford to pay the monthly installments of your proposed home loan modification facility. A debt-to-income ratio is basically a financial formula that compares how much you earn and how much you spend. The ratio varies from lender to lender, but generally it stays between 38% and 52%. It’s important you prove you can afford to pay your home loan modification monthly installments to become eligible for your home loan modification application.



3. Prove your income

The home loan modification lender generally verifies your monthly income, and ensures you have the capability of successfully redeeming the credit facilities. For this he or she may ask you to provide your income related documentation such as paychecks, pay stubs, bank statements, income obtained from stock investments, bonds, and other sources of income if you have them. It’s suggested you carefully gather all the documentation and include them in your home loan modification application.

MortgageITT has home loan modification attorneys who can help you in meeting the eligibility criteria, and who can help prepare your home loan modification application.

MortgageITT Home Loan Modification Services

As on today, due to the unfavorable market conditions and ongoing recession, millions of Americans are finding it difficult to make their credit payments, and are also struggling with their mortgage payments. If you’re falling behind on your monthly mortgage payments and you are facing or going to face a foreclosure, or you’re likely to become delinquent, MortgageITT can provide a way out and make it easier for you to save your home through the home mortgage modification services. These services are specially created for both delinquent as well as non-delinquent borrowers to modify their existing mortgages and make them more affordable. Our qualified legal loan modification professionals and loan modification attorneys can assist you in preparing an affidavit of your financial hardship letter which is essential for the home loan modification process. The key benefits offered by MortgageITT home loan modification services are:

1. You avoid foreclosure and save your home

Owing to unhealthy housing market conditions and growing delinquency, lenders are quick to respond when the borrower misses out on the mortgage payments on a regular basis. The debt recovery process is initiated quickly, and if the borrower still can’t clear the mortgage dues, the lender is most likely to enforce a foreclosure. MortgageITT’s mortgage loan modification attorneys can negotiate with your lender in availing a suitable loan modification by waiving the late fees and penalties, decreasing the net payable interest amount, reducing the monthly mortgage payments, and convincing your lender not to impose the foreclosure. This can make it easier for you to remain regular on your mortgage payments and save your home.



2. You free up money and pay off other debts

In most cases, individuals have multiple financial liabilities such as credit card payments, auto loans, insurance charges, IRS tax payment, mortgage payments etc. The individual is liable to make regular payments and cater to these liabilities to live a debt free life. Amongst these payments, the mortgage payments are the most significant, since they involve a larger installment amount as compared to other monthly payments. By reducing your monthly mortgage payments through MortgageITT’s home loan modifications, you end up with extra liquidity which can be used to pay off other monthly dues, thus making it easier for you to redeem other financial liabilities.



3. You improve your credit status and keep your credit standing

While availing any loan or credit facility from a bank or a lending institute, it’s your credit status that will determine whether you’ll get your loan, and what kind of interest rates you’ll be paying for it. If your credit ratings are poor, chances are you won’t be getting your loan. If you have average ratings, you’ll pay a higher interest rate. If your ratings are good, the loan will be affordable. Moreover, foreclosures severely affect your credit scores. It’s important to be regular on your monthly payments to improve upon your credit ratings. MortgageITT’s home loan modification options help you make regular monthly payments and avoid foreclosure, so after some time your credit status starts improving, thus making you eligible for affordable loans in the future.

Each borrower’s situation is different, so it’s important you consult our loan modification attorneys who can study your particular case, and work out an effective home loan modification so you become free from mortgage debt and avoid a foreclosure from taking place, thus saving your home.

Home loan modification counseling

Perhaps, one of the most important aspects in a home loan modification process is the type of home loan modification help you get. Good and effective counseling is necessary to deal with the mortgage debt and delinquency related issues. That’s where MortgageITT excels, since the credit counseling sessions provided by the loan modification processionals can help you manage your debts and financial obligations in a much better way, and even help you avoid mortgage and other debts from occurring in the future. To avail the counseling, it’s suggested you prepare a checklist so it becomes easy to analyze the extent of your mortgage liabilities and status.

Checklist

• Monthly mortgage statement of your first mortgage
• Any second mortgage or home equity line of credit
• Credit cards account balances, and dues on minimum monthly payments
• Bank account balances, monthly payments on other debts
• Most recent income tax returns
• Your savings and other assets you possess
• Household’s monthly gross income (before tax)
• Recent pay stubs
• Documentation of income from other income sources
• Hardship letter

What you have to do now?

Availing home loan modification is not easy. One has to collect all the relevant mortgage details and prepare the home loan application in a proper manner. It’s recommended you provide us your name and contact details so our loan modification attorney can call you and provide free non-binding consultations to guide you how you should go about your home loan modification. So click here to access our online application form and save your home from foreclosure.