subject: 5 Basic Requirements for Mortgage Loan Modification [print this page] 5 Basic Requirements for Mortgage Loan Modification
With the recession and layoffs taking place among most organizations, many people have lost jobs and are looking for ways to reduce their mortgage bills. If you are one of those people who are facing problems in making monthly payments, you need to get mortgage loan modification as it will allow you to reduce your burden by decreasing the monthly payments. If you are wondering about the requirements for mortgage loan modification, read on.
To be eligible for the loan modification, it is important that you use the mortgaged house as your primary residence.
Also, your mortgage loan must be issued prior to January, 2009. If the mortgage was issued after the specified date, you may not be eligible.
Another important requirement for loan modification is to have a loan amount which is not greater than $729,750.
Loan modification will be applicable on your house if your current monthly installment is greater than 31% of your monthly income inclusive of property taxes and insurance payments.
One of the most important requirements for mortgage loan modification is financial hardship since this program was initiated to help those facing financial problems. According to this requirement, you must have financial troubles in the form of unemployment, decreased income because a family member got laid off, increased expenses in the form of medical expenses or a divorce or inability to work due to a permanent injury. If you fulfill the mentioned financial conditions, you will be required to produce a hardship letter to qualify for loan modification.
These basic requirements for mortgage loan modification are standard among different lenders. If you need to qualify for loan modification, it is important to fulfill these criteria otherwise your application will not even be considered.
Also, while applying for loan modification, make sure you provide all the required documents such as your monthly income statement and your financial hardship letter. Also ensure your hardship letter is to the point and accurate and delivers your message perfectly. If you are still doubtful about the requirements for mortgage loan modification and the application process, I suggest you seek the help of professional loan modification companies.
