Criteria Required For Mortgage Modification Loan
The recession has caused huge number of home owners struggle to pay their monthly payments and also face the foreclosure.
This problem can be overcome by making use of the loan modification process.
Most of the people think that this process is a bit tedious one and time consuming.
But it is not so as it can be done in an easier way under guidance.
Now, let us see the criteria that are required to avail the home loan modification.
The first and the most important criteria is that the house where you are living should be the one on which you should take the mortgage loan.
The loan will be rejected if the loan is taken for a house which is given for rental or lease.
The second criterion is that the loan modification will get applied only to loans where the monthly payment is higher than the 31% of monthly income.
The third is the unpaid principle of the loan should be less than $ 7, 29,750 and the date of the loan origination should be before Jan 1, 2009.
The fourth criterion is that the today value of the mortgaged property is less than the mortgaged amount.
In addition to the above criteria, the mortgage lender require some more information such as the principal balance on the mortgage loan, the ratio of principal, interest, taxes and insurance.
If the values you have mentioned matches with the criteria specified by the lender, you might get considered for the same.
Mortgage modification loan is not a loan by itself but it is just a modification to your existing mortgage loan.
The modified terms will help you in reduced and affordable monthly payments.
Once you become eligible for the loan modification, you will have to enter the required information (financial data) in the application form and submit it for further process.
Tax returns, pay slips and the bank statements are the mostly requested financial data.
You should also write a hardship letter explaining the events that caused you to become unable to pay the mortgage loan and make sure to mention the hardship situation such as lay off, injury, death of a spouse, divorce/separation and illness.
This Mortgage modification loan program is applicable only for an American citizen who is able to prove his/her financial difficulty.
By taking part in this program you will only have to pay 38% of your gross monthly income out of which 7% will be paid by the government.
In addition, the interest rate will be reduced by 2% and $1000 from your principal will be paid by the government every year.
This problem can be overcome by making use of the loan modification process.
Most of the people think that this process is a bit tedious one and time consuming.
But it is not so as it can be done in an easier way under guidance.
Now, let us see the criteria that are required to avail the home loan modification.
The first and the most important criteria is that the house where you are living should be the one on which you should take the mortgage loan.
The loan will be rejected if the loan is taken for a house which is given for rental or lease.
The second criterion is that the loan modification will get applied only to loans where the monthly payment is higher than the 31% of monthly income.
The third is the unpaid principle of the loan should be less than $ 7, 29,750 and the date of the loan origination should be before Jan 1, 2009.
The fourth criterion is that the today value of the mortgaged property is less than the mortgaged amount.
In addition to the above criteria, the mortgage lender require some more information such as the principal balance on the mortgage loan, the ratio of principal, interest, taxes and insurance.
If the values you have mentioned matches with the criteria specified by the lender, you might get considered for the same.
Mortgage modification loan is not a loan by itself but it is just a modification to your existing mortgage loan.
The modified terms will help you in reduced and affordable monthly payments.
Once you become eligible for the loan modification, you will have to enter the required information (financial data) in the application form and submit it for further process.
Tax returns, pay slips and the bank statements are the mostly requested financial data.
You should also write a hardship letter explaining the events that caused you to become unable to pay the mortgage loan and make sure to mention the hardship situation such as lay off, injury, death of a spouse, divorce/separation and illness.
This Mortgage modification loan program is applicable only for an American citizen who is able to prove his/her financial difficulty.
By taking part in this program you will only have to pay 38% of your gross monthly income out of which 7% will be paid by the government.
In addition, the interest rate will be reduced by 2% and $1000 from your principal will be paid by the government every year.
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