Can I Do A Loan Modification?

The answer to this question has several stipulations and of course will be determined by your lending company. The Obama Administration has put mortgage modification into practice but now it is in the hands of the lending companies to fulfill the deal.

The entire process can be frustrating and quite confusing for  individuals  who do not want to lose their homes. A loan modification is nothing more than changing parts of your loan  to ensure you can make your payments comfortably without refinancing, which is like starting over  with a new mortgage loan. A mortgage modification   is a negotiation between you and the lending company. Of course, it would be in your best interest to have a loan modification attorney to help you with all the details and paperwork.

Qualifying for a mortgage modification will be the hardest part,  because you will have to prove your income, provide a complete and accurate financial statement, and prove that you can afford the new lower payment.

At  one time, lending companies  only  worked with their clients  on loan modifications  after they fell behind in their mortgage payments. However, the Federal Government has allocated $75 billion dollars to lenders and mortgage servicers so that they can work  to keep  people in their homes. Homeowners  who pay the new modified payment on time will also be eligible for up to $5,000 credit to their loan balance. Contact a real estate attorney to make sure you are eligible for a loan modification.