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Mortgage Modification Programs

A loan modification is like a mortgage refinance. The objective is to find you a more affordable payment for your current financial situation. You’re modifying your existing mortgage.

Mortgage Modification Eligibility Requirements

Loan modifications exist to help homeowners that have suddenly incurred financial hardship (like losing a job) that prevents you from making payments.  Qualifications include:

  • You have experienced a documented change in financial circumstances
  • You’ve missed three or more house payments
  • You own and use the property as a primary residence
  • You have not filed for bankruptcy
  • You did not purposefully default to get a loan modification
  • You’re responsive in working with your lender

Mortgage Modifications and Your Lending Institution

Begin your loan modification process with your current lending institution. It’s in their best interest to work with you as it’s in your best interest to  work with them in good faith.

Here’s what you’ll need to show your bank:

  • A detailed letter explaining your hardship
  • Proof of your current income and your ability to make a modified loan payment
  • A detailed monthly expense and income budget

Mortgage Modification Programs

Below are some of the current loan modification programs available to homeowners:

  • The White House/Treasury Loan Modification Program
  • IndyMac Federal Loan Modification Program
  • Federal Housing Finance Agency Loan Modification Program
  • Major Lender’s Loan Modification Programs

You can talk with a qualified loan counselor from the Department of Housing and Urban Development (HUD) to begin the process.

Steve Wyrostek Expert A 20 year plus veteran of the insurance industry, Steve managed departments in the personal and commercial lines areas of major insurers. He’s familiar with how insurance—ranging from boat to workers compensation—works.

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