For the record, the banks are not willing to modify your loan just because you ask. You need to qualify for it. It is a very similar process that you went through when purchasing the home, except it is a reversal process. Instead of proving you have enough income flowing in to pay for the home, you now need to present a valid hardship. The banks do not consider inflation or your personal expenses going up as a true hardship, like the might be willing to do for a short sale. A hardship can only be considered if your income goes down. Anyone who has experienced a reduction of their income could potentially qualify. Yet, there is a threshold on what the bank is willing do.
To determine your eligibility, answer these questions:
- Do you currently reside in the home (you are not renting it out)?
- Is your monthly mortgage payment more than 31% of your gross monthly income?
- Are you employed?
- Can you prove your current income?
- Does your loan amount conform to the limitations of Fannie Mae (between $417,000 up to $729,750)? Please keep in mind that these are ceilings, so if your loan is less than $417,000, you may still be eligible.
If you answered yes to most, if not all of these five questions, then you may have a chance of qualifying for a loan modification with at least one of the programs we will talk about in a couple of minutes. Borrowers who are unable to make their monthly mortgage payments and who are struggling are at an imminent risk of default.
To learn more about Loan Modifications, and if its the right option for you please click here http://savemypalmbeachcountyhome.com/
Comments(0)