Qualifications For a Mortgage Modification

Qualifications For a Mortgage Modification

Distressed homeowners are being given another opportunity to explore options to modify their home loans and prevent foreclosure at a state-sponsored forum in Storrs. ... Attorney General George Jepsen said not everyone has qualified for a loan ... Conn. to hold forum to help distressed homeowners

Department of Housing and Urban Development Secretary Shaun Donovan published as of today the FHA has prepared amendments to its loan workout program so that it will further complement President Obama's Home Affordable Modification Program (HAMP) under Making Home Affordable. It is hoped that the new FHA mortgage modification rules will be in place by August 15th.How does this aid you? Well, if you currently own a mortgage insured by the Federal Housing Administration (FHA), you will be able to radically decrease your monthly home mortgage payments, interest rate, and possibly achieve a partial principal forbearance or balance reduction (a decrease in the amount you owe on your home loan), provided you meet the new guidelines.Homeowners that have successfully recieved a mortgage loan modification through Obama's Making Home Affordable Program have had staggering results, some homeowners lessening their mortgage rates to as low as 2% on 30 and 40 year fixed loans, saving a good deal of moneyeach month on their home loan.The Burst of the Housing Bubble is a very stirring era for homeowners in FHA loans, as they now as well can get similar positive outcomes. Qualifying for the FHA -HAMP can be somewhat tricky, and there's a good deal of bad information out there on how to successfully modify your mortgage. We're going to put to rest the tittle-tattle, and help you figure out how to get qualified, Modification Zoom style.Primarily we must cross the "eligibility" bridge - Your ...

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Financial Institutions vary on how they make the requirements for a mortgage modification sound. Some make them sound extremely easy and others make them sound really complicated. Apart from the security basics, that is, confirmation of your identity, your social security number, and other specifics along these lines, the application process is quite easy, if you know what you are doing.

The Basic Qualifications for a Mortgage Modification:

1. The mortgage modification you are applying for needs to be for your primary place of residence.

You may only qualify for a mortgage modification on your primary place of residence. All others such as a vacation home, a time share, or a summer home are NOT allowed for this program. This was put into effect to help those who need to adjust the current loan contract that is on the home that they reside in all the time.

It is also possible that if you do own a 2nd home or any other property of value, you will not be approved for the program.

2. Do not stretch the truth with your bank

In order for the new agreement that you are trying to obtain to actually be helpful, you must be honest with all your personal finance information. The financial institution will be seeing all your information anyhow, so what good would it do to try to make your situation not seem as bad? You are trying to get help and to get that all information must be given in full.

3. 30% of your total income is what to expect to pay on your loan.

The set in place guideline states that for newly negotiated mortgage modifications that 30% of your monthly income will be the set rate. I know this may sound steep but in all honesty, if you sat down and figured it out, you are paying more than the 30% already.

There may also be other fees on top of this that you must take into account for such as legal and administration fees. Watch these.

The information that is required may vary depending on your bank or financial institution. Some require more and some require less. It all depends on their set of rules that they follow. Do not take this personally. They are not out to get you. Remember, you are their customer. Financial institutions receive government funded payments for signing up customers into this program so don't be afraid to do your homework and check out a few different financial institutions before signing with one. The fees associated as stated above could be less at one than at another or you may get a lower rate with one that would even out the other fees. Take your time in deciding and don't rush into anything.

It is always a good idea to have the contract read by a 3rd party that specializes in this area. It will be worth having to pay for the consultation in the long run. You may find that the consultation pays for itself and more if they find fees that should not be applied and so on. You are not forced to sign the agreement. It is a legally binding document between two parties and both parties sign of their own free will. If you feel uncomfortable with the agreement, do not sign.

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Question by loanmad: has anyone tried a loan modification thru Bank of America? BoA has been unresponsive for months now. Said it could be done in 30 days if you were qualified. One qualification was you only had 3 months cash reserves. It's now been going on 4 months and the 800 number jumps runs you thru a loop asking if you want to make arrangements for your past due mortgage payment. Wouldn't be past due had the modification been done by now. Guess they would rather foreclose than help. Best answer for has anyone tried a loan modification thru Bank of America?:

Answer by MARY SMITH
Hi, My names is Mary Smith. I saw your question in yahoo answer I decided to refer you to this God fearing man, because i have been SCAMMED twice by fake lenders. When i had bad credit, it was this man that gave me a loan of $ 45,000 to consolidate my bills you can get to him via Email: hexagonfinanceloanfirm@hotmail.com Tell him Mary Smith referred you to him that he gave her a loan sometime ago. Good luck, Mary Smith

Answer by Larissa
I would check out http://loanrefinanceadvice.com/ They have a ton of great info on how to refinance your loan for a lower rate, refinance laws and rules, and everything to do with refinancing a loan.

Answer by Steve
You need to keep trying. They're swamped with calls from people in the same boat and they definitely don't want your property. Try seeking some professional advice. There are many knowledgeable people out the who have experience dealing with Bank of America and will give you a consult for no charge. A great site I used was http://www.credit-hub.net/loan-modification where I entered my contact info and a very helpful person gave me a call and explained the process.

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