One common fear people have is to lose their home because of a financial difficulty.
This is because there have been more than one million home foreclosures in the recent years.
Sadly, this has also had a big influence on the economy of the US.
Because of this, there are now available loan mortgage modification programs which can be helpful to the people who are facing foreclosure.
But what is this modification program really and who can be eligible to get one? Simply put, a home loan modification program alters the original and existing terms of a loan so that a borrower has a much better chance of paying back the loan in order to avoid foreclosure.
There are several changes which can be done to a loan such as an offer for a new and lower rate for interest or lowering the minimum payment every month.
The modifications done are subsidized by the federal grants which enable lenders to apply modifications without having to suffer financial losses.
Sadly though, this program has not been designed for everyone.
There are some qualifications that every applicant must meet.
You must currently be under financial strain which makes you incapable of paying your mortgage.
Remember though, you must be unable not unwilling.
There needs to be a legal negative financial condition which prohibits you from paying on time.
This can be proved by your debt ratio.
But what is debt ratio? To simplify, it is your expense statement which illustrates expense deficits which are preventing your ability to repay your mortgage.
This means that you have to display that after you have spent your income on your daily expenses, you have very little left to use in paying your mortgage.
Aside from the debt ratio, you have to write a letter which states that you have full intention to repay your mortgage.
Although some may think of this as strange, you must understand that these modification programs are still legal procedure and they also need a contract.
In addition, you also need to supply a hardship letter which details specifically why you have encountered a financial difficulty.
It can be because of a reduction in salary, job loss, or an excess in medical bills.
Since these prerequisites are not hard to meet, anyone who is in financial difficulty can easily apply.
This is because there have been more than one million home foreclosures in the recent years.
Sadly, this has also had a big influence on the economy of the US.
Because of this, there are now available loan mortgage modification programs which can be helpful to the people who are facing foreclosure.
But what is this modification program really and who can be eligible to get one? Simply put, a home loan modification program alters the original and existing terms of a loan so that a borrower has a much better chance of paying back the loan in order to avoid foreclosure.
There are several changes which can be done to a loan such as an offer for a new and lower rate for interest or lowering the minimum payment every month.
The modifications done are subsidized by the federal grants which enable lenders to apply modifications without having to suffer financial losses.
Sadly though, this program has not been designed for everyone.
There are some qualifications that every applicant must meet.
You must currently be under financial strain which makes you incapable of paying your mortgage.
Remember though, you must be unable not unwilling.
There needs to be a legal negative financial condition which prohibits you from paying on time.
This can be proved by your debt ratio.
But what is debt ratio? To simplify, it is your expense statement which illustrates expense deficits which are preventing your ability to repay your mortgage.
This means that you have to display that after you have spent your income on your daily expenses, you have very little left to use in paying your mortgage.
Aside from the debt ratio, you have to write a letter which states that you have full intention to repay your mortgage.
Although some may think of this as strange, you must understand that these modification programs are still legal procedure and they also need a contract.
In addition, you also need to supply a hardship letter which details specifically why you have encountered a financial difficulty.
It can be because of a reduction in salary, job loss, or an excess in medical bills.
Since these prerequisites are not hard to meet, anyone who is in financial difficulty can easily apply.
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