Loan modification is a relatively new product offered by lenders and is typically aimed at people who are unable to make monthly loan payments and do not want to lose their home to foreclosure. For such people, loan modification is the best solution as it not only reduces the monthly installments but also provides these home owners with a chance to save their homes. One such loan modification plan is also offered by FHA.
However, like all other loan modification plans, FHA loan modification also requires some evidence that the borrower will not default even after the loan modification is done. After all, they will help you ease your burden and modify interest rates keeping in mind your financial situation. Therefore, in order to qualify for an FHA loan modification, some strict requirements should be met by the applicant. The borrower might need to provide a hardship letter to the lender stating the current financial situation of the borrower. It is necessary to let the lender know that you have done everything possible to improve your current financial condition and pay the loan. If presented wisely, this would make the FHA loan modification process easy. If the case is presented in a way that financial hardship is evident, then the lender may look favorably on the application.
Before applying for FHA loan modification, it is also necessary to keep in mind that the loan modification application may or may not get approved. This depends on a number of situations such as the situation of the housing market. If the housing market is in a situation that foreclosure of the house seems a better option than modifying the mortgage, then the FHA loan modification might not get approved.
However, if you are aware of the requirements and prepare for the loan modification process in advance, then you can increase your odds of getting the application approved. To support your loan modification application, it is necessary that you provide a detailed financial statement which reflects your financial troubles. It will also require other documents such as credit history and employment history.
Also, it is extremely necessary to make sure that the loan modification application is complete and all the essential documents are presented and guidelines are met. Incomplete applications are not even considered for loan modification.
Many professional organizations also offer assistance to borrowers in getting their loans modified. You can also seek the help of these organizations to make your case stronger.
Therefore, if you want to get FHA loan modification, it is necessary that you follow their guidelines.
