Under the government's Home Affordable plan, you will not qualify for a loan modification through this program if you have ever had your mortgage modified before. This is one of the first rules established with the program. It is for this reason alone that when you apply for a loan modification you get it right the first time.
Loan modifications consist of a lot of paper work. Lenders want to review your financial situation to determine where the loss of income came from, will it be permanent and will you be able to pay the mortgage once the loan is modified. If you are not comfortable with managing paperwork, like many of us are not, it is advisable to seek a loan modification attorney to help with the program.
Using a loan modification attorney will alleviate any problems with the paperwork and documentation of the facts. It will also pass the responsibility of getting the loan modified to the right amount to a professional. There is not a second time when it comes to loan modifications; it must be done right from the beginning.
A loan modification will reduce your debt burden by decreasing the interest rate on your loan and possibly reducing the amount that is owed. Homes that are in default status can be made current again by being approved for a modification. This program is that important, but it is also very strict. You must complete everything correctly, comply with response times and adhere to the repayment plan to benefit from it all.
This program can help you overcome your current financial difficulties. It can place you back on the road to stability, and will allow you to stay in your home. However, you must remember that there is no second time around; the application and follow up must be completed correctly the first time.
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