What You Need to Know About a Loan Modification?

As the Obama loan modification programs are there to help homeowners with loan modification either thru Making Home Affordable or Home Affordable Modification Program, there are things you as a homeowner need to know.

First of all, the banks are subsidized by our TARP money and encouraged to re-structure existing loans for homeowners. Many banks are already partially owned by the government, for example the government owns 35% of Citibank to name one. So, it seems clear that the pressure is on the banking systems to handle loan modifications and turn our economy around as quickly as possible and with the support of government loan modification programs.

Let’s be clear on the difference between a loan modification and a refinance. A loan modification does not pay off your existing loan or look at credit to see if your credit is worthy or not. That means great credit or poor credit does not matter in the decision making of a loan modification. Many homeowners don’t realize that there are many benefits of a loan modification that they are otherwise not privy to if they did a refinance.

One of the key points to remember if you are starting to think about a loan modification is that you do not have to have equity in your home. If you have equity that is fine and if you don’t have equity that is fine to in qualifying for a loan modification. In some cases, if you are significantly upside with your mortgage, a principal reduction may be warranted.

As with a refinance, you need two years of employment to qualify for a loan. This is not the case for a loan modification. The length of employment is not a factor, or change in income, or gaps in employment. The only real factor is that you can prove your income to the bank. The bank also can use income of others that are living with you and these people do not have to be on title or on the loan. This is great news for someone needing a loan modification and can use these other sources for qualify.

You also do not have to be in an adjustable interest rate loan to qualify for a loan modification or have an extremely high interest rate. There are several programs like Making Home Affordable or Home Affordable Modification Program that you may qualify under plus others. The quickest and easiest way to find out if you qualify for a loan modification, is to contact a professional that will qualify you for free. It is basically your time to collect paperwork and also fill out paperwork.

It is similar to a CPA doing your taxes, which is hiring a Loan Modification Attorney to prequalify you for a loan modification for free and offer 100% money back guarantee. The better Loan Modification Attorneys offer this service.

If you are in need of assistance with the loan modification process or terminology, we highly recommend visiting our website where there are free articles and plenty of information to help you. Our Loan Modification Attorneys offer 100% money back guarantee with almost 100% success rate. If you can’t find what you are looking for and need help, please call contact us at www.CallALMS.com or call 877-700-2567.

Tags: loan modifiaction faq, Loan Modification, loan workout, modify mortgage loan, mortgage modification, mortgage workout

This entry was posted on Saturday, September 19th, 2009 at 1:17 am and is filed under Attorney Loan Modification, Loan Modification. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.