Nov 11, 2014

Posted by in Lawyers | Comments Off on Loan Modifications-Important Information Regarding the Process

Loan Modifications-Important Information Regarding the Process

Are you struggling to make your house payments? Do you want to save your home from foreclosure? If so, a loan modification might be the route for you! The process of applying for a loan modification can seem just as involved as when you first purchased your home. But if you’re struggling to make payments and you want to save your home from foreclosure, then a loan modification is your best chance for a fresh start.

A Loan Modification is a change to one or more of the terms of a mortgagor’s loan. This allows the loan with different terms to be reinstated. This results in a payment plan that the mortgagor can afford. A mortgagor should be able to communicate, identify and document the hardship(s) that caused them to fall behind on their mortgage payments in the first place. These typically involve situations such as unemployment, family emergencies, unexpected medical bills, divorce or death of a spouse. One should document these hardships with bills, unemployment payments, paystubs, ect. By documenting these hardships, you can build your case for a loan modification.

In addition to documentation, you should seriously consider obtaining an experienced Florida attorney who is knowledgeable about the Loan Modification process. Your lawyer will send a hardship letter explaining the circumstances for the need of a modification.

Also, usually the last two years of income tax returns and a list of your expenses and income are needed to determine whether you have sufficient means to meet your current mortgage obligations. In order to modify an existing loan, a candidate needs to show that his or her monthly mortgage payments exceed thirty-one percent of your income. This ratio is calculated by adding up your monthly expenses; these expenses may include electricity, food, student debt, food expenses, ect.

Once you gather up all of your pay stubs, bills (including medical) you or your lawyer will then complete a form to request such a modification, as well as an affidavit from the potential candidate that verifies that these expenses are, in fact, accurate. Make sure to create copies of all the documents you or your lawyer plan on submitting and keep the originals in a safe place for the future. You or your lawyer will then submit your paperwork to the lender for their review and determination.

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