Know How the Mortgage Loan Modification Process Works

In a typical mortgage loan modification process, your lender will act to alter the terms of your existing home mortgage loan so that the new monthly payments will be easily manageable. As part of the procedure, lenders usually reduce interest rates, extend duration of the current loan or even provide reduction in unpaid principal loan dues in certain cases. Nevertheless, for getting your present home mortgages modified with your lender, financial hardship situations need to be clearly foreseeable and to convince your mortgage servicer, valid reasons need to be provided. Therefore, it will be essential for you to have a thorough understanding of the process.

Many loan modification companies like USLOANZ offers professional loan modification services online to guide borrowers in determining their eligibility for home loan modifications as well as in assisting them to prepare and furnish exact documentation needed for getting an early approval.

Some of the most convincing reasons which may help during loan mod processing are being mentioned below

  • Resetting of an adjustable rate mortgage
  • Drastic loss in monthly income or job loss
  • Failed business which has incurred losses
  • Marital separation or divorce of an applicant
  • Death of spouse or any other member of family
  • Expenses due to prolonged illness or hospitalization

Besides, the exact loan modification procedure will involve the following steps

  • Get connected to a legal expert for a free consultation to find out if loan modification can really help you.
  • Prepare a list of documents which will include latest mortgage statement, copies of 2 recent pay stubs, bank statements, W2 forms as well as last 2 years’ income tax returns and a detailed income/expenses statement.
  • Complete an application and submit it to your mortgage servicer who will then review it and analyze the information provided by you to determine whether a loan modification can be granted. The process could take as long as 45 days or even more.
  • If you qualify, your attorney will assist you to negotiate the new interest rates and terms with your lender so that an agreement may be reached between you and your lender for modifying the terms of the current home loan.
  • Mortgage servicer will send a draft of the contact agreement to the homeowner which has to be studied in detail prior to inking the deal. Thus, the entire procedure will run into almost 2 months before you receive an approval

USLoanz could actively assist you to find the best loan modification company for your modification process in your neighborhood which could help you to improve your chances of getting your existing unaffordable mortgage loan modified. In addition, you could be helped to secure a solution that is easily affordable as well as favorable to satisfy your unique financial needs and requirements.