Posted on: 09th Dec, 2011 11:03 am
i have several questions, after i read all the rules on loan modifications i'm still not sure which program is going to work? i just lost my job on monday and i'm not behind...yet, so i don't fit into any of the modification catagories. i want to get the process started before it becomes dire what should be my next step? i just want to lower my interest rate that would be a big help in itself.
is your property underwater? there are refinance programs available that can go to 105% of your value. you would have to find another job then provide 30 days of paystubs to qualify. if not possible, you have several options. do some more research on the number of permanent loan modifications by your bank. the number is quite low. your options include,*finding another job and doing a refi, *trying for a loan mod under the hamp/hafa program, *short sale under hafa, *deed in lieu and finally renting out your home, and let another pay most if not all of your mortgage payment. check with your state laws on foreclosure, whether judicial or non judicial and whether you have a mortgage or a deed of trust. on non judicial states using deed of trust, no deficiency judgements can be obtained. good luck
that was me above, was not logged in.
A mortgage modification program modifies the existing mortgage loan with new terms and conditions. It is likely that the new terms would be comparatively easy for you. But, since you have lost the job, first of all, you need to search a new job. This is important because you have to repay the modified mortgage loan too.
You are in a confusing state of mind at this moment since you have lost your job. I would suggest you to go for loan modification. With the help of this program, the lender will modify the terms and conditions of your present loan and make the loan payments affordable for you so that you can pay it off within a specific time period. Search for a job at the earliest possible because you will have to repay the modified loan. :)
Penelope,
Unfortunately, all modifications are income based. HAMP looks at your gross, and Traditional your net income. Since you have become unemployed, you need to see if you qualify for unemployment until you find a job. If you receive an award you can file for an Unemployment Forbearance depending on your loans investor that will in most cases reduce the amount you have to pay to 31% of your income during the forbearance period which typically lasts for 6 months. Now the difference of what you have to pay vs. the contractual amount you owe will have to be paid at the end of the forbearance period which is when you would file for the Modification which you can hopefully qualify for because you will be reemployed and have an income to review.
Check to see if your state is part of the Hardest Hit Funds, there are several states that offer assistance to people that have lost their jobs through no fault of their own with monthly mortgage payments. Each has their own requirements.
Keep in mind you will be looking for a job and your credit will be evaluated as part a background check. Even if you are given a forbearance any deviation or modification of the original terms of your note will have an effect on your score and reporting. If you are able to maintain the payment continue on.
Contact your servicer for details and remember that your servicer is not the decision maker, your loans investor has guidelines that the servicer must follow and the investor has to approve any option offered.
Unfortunately, all modifications are income based. HAMP looks at your gross, and Traditional your net income. Since you have become unemployed, you need to see if you qualify for unemployment until you find a job. If you receive an award you can file for an Unemployment Forbearance depending on your loans investor that will in most cases reduce the amount you have to pay to 31% of your income during the forbearance period which typically lasts for 6 months. Now the difference of what you have to pay vs. the contractual amount you owe will have to be paid at the end of the forbearance period which is when you would file for the Modification which you can hopefully qualify for because you will be reemployed and have an income to review.
Check to see if your state is part of the Hardest Hit Funds, there are several states that offer assistance to people that have lost their jobs through no fault of their own with monthly mortgage payments. Each has their own requirements.
Keep in mind you will be looking for a job and your credit will be evaluated as part a background check. Even if you are given a forbearance any deviation or modification of the original terms of your note will have an effect on your score and reporting. If you are able to maintain the payment continue on.
Contact your servicer for details and remember that your servicer is not the decision maker, your loans investor has guidelines that the servicer must follow and the investor has to approve any option offered.
Although a loan modification can restructure the rate and terms of your mortgage down to a reasonable and sustainable amount over the long term, not everyone will qualify. You will need to prove that you have sufficient income to make the reduced payments on an ongoing basis.
Loan modification is possible and you must pay some money for its lower rate. You should consult with your mortgage broker that which plan will be suit for you.
To know all about loan modification, check out the given page: http://www.mortgagefit.com/know-how/loan-modification.html
Through mortgage modification program, you will be able to save some money. This alters the terms and conditions of the existing mortgage loan and makes it easier.
Loan modification enables you to modify your existing mortgage loan with better terms and conditions so that you may be able to pay off your present loan.But, since you have lost the job, the first thing that you should do is to look fora new job. This is important because you need to keep in mind that you will have to repay the modified mortgage loan.