As a result of increased unemployment rate in the US, many people are going through financial hardship in repaying their current mortgage and thinking of opting for foreclosure. However, they can save their homes by taking advantage of loan modification services.
One should take help of agencies offering loan modification services; otherwise due to inadequate knowledge on the process, their application may get rejected. Based on a recent market survey, the total number of application for loan modification for the year 2010 was 3,404,501. Out of this number, only 70.4% of applications were found to be eligible for the modification program and the number was 2,396,285. Out of this, only 3.4% of the applications got approved for modification programs and the number was 116,297.
Mortgage loan modification is a program which allows a borrower coming to an agreement with his lender. As per the agreement, the lender makes some changes in the loan terms and conditions, on the basis of the borrower’s repayment affordability. As per the Obama Home Affordability Modification Program (HAMP), lenders will be able to help in 3 ways- extending the loan term till 40 years, reducing the monthly payment amount, or lowering the interest rate to as little as 2%. This new loan modification program will also help the borrowers by deducting $1,000 from the principal amount each year for upto 5 years, if he is regular on the monthly payments. However, after the housing crisis of 2007, the lenders have made eligibility criteria, to get qualified for this program more stringent. To get qualified for a loan modification, one needs to fulfill the following criteria-
* The borrower is in a state of being delinquent and heading towards foreclosure
* He is self employed but passing through a tough pecuniary phase
* He has an adjustable rate mortgage on his current loan
* He is the primary resident of his house
* The first mortgage should not have been obtained after 1st January, 2009
* The amount you owed on 1st mortgage should not exceed $729,750
* His loan is insured by Fannie Mae or Freddie Mac
* He is not eligible to qualify for a mortgage refinance
* The mortgage payments has exceeded 31% of his gross monthly income
* He does not have any home equity
You can obtain loan modification services by logging onto www.integrityfirstonline.com. This reliable company, with their experience for over 30 years will do everything so that you can obtain the best suitable terms and conditions on your modified loan.
Are you considering a loan modification? Integrityfirstonline.com provides some useful information to help you decide whether Loan Modification Services are right for you.
