There are usually situations where changes need to be made to loan agreements. At the point of getting a loan, you may feel you have the means to pay a particular amount monthly as refund, but unfortunately, your effort to pay the amount becomes futile. If you happen to meet yourself in this execrable condition, the best option to make things stress-free for you is loan modification. I propose you continue perusing this article, as it will make you cognize how to prepare loan modification.
WHAT IS A HOME LOAN MODIFICATION?
For the sake of clarity, a loan modification is the modification of an existing loan made in order to make it possible for a borrower to pay back his/her debt. Home loan modification provides a new type of payment to homeowners to pay at a lower rate. Your bank is however saved the cost of a foreclosure sale of your home in exchange for this lower payment. The payment is dwindled to 31% of the home owner’s income to loan ratio. This program is very helpful to home owners that cannot meet current home loan payment obligations. Quite simply, it helps to renegotiate interest rates, financing rates, deferred payments and so many more.
HOW TO PREPARE LOAN MODIFICACTION
• INDICATE YOUR LOAN NUMBER: - It is paramount that you indicate your loan number on every page of the application. It should be clearly listed at the top of every page, as well as on all supporting documents.
• PROACTIVE WITH LOAN SERVICER TRANSFERS: - It is required of you to be proactive and increase your review with your present servicing company if your loan is transferring to another loan servicer in your review.
• CHECK YOUR RATIO: - Your mortgage to income and debt to income ratio are important factors that will determine approval or denial. There is high prospect you will be denied if your debt to income ratio is negative.
• SEND YOUR TAX RETURNS: - It is important to know that your tax return transcript is not your tax returns. A lot of people make the mistake of sending their tax return transcripts.
• LEARN PROGRAM GUIDELINE BASICS: - It is essential you gather your qualifications before taking any step. Statements of accounts and proofs of source of income are amongst the documents that can make your loan modification to be approved.
• RIGHT AMOUNT OF INCOME: - The amount of money you earn monthly is among the top things that are considered before approval. You can be denied for having too much income, not enough income, and even too many debts.
• CONTRIBUTION INCOME: - If you are lucky to have someone living in your property but not on mortgage, it may be possible to include their incomes.
• GET HELP: - I strongly propose you get professional help. It will save you the stress and will most likely yield a positive outcome. A professional will definitely know the different ways to get the approval you need,