Mortgage Modification Help
A mortgage modification helps owners who can no longer manage their home loan payments. With a modification, lenders agree to change the original terms of the mortgage in order to lower the monthly payment.
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Who Benefits
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Property owners can refinance their mortgage loan to acquire a lower, fixed rate and reduced payment. However, refinances require a good credit score, and modifications benefit owners who have defaulted on their mortgage and can't qualify for a refinance.
Qualifying
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Not every homeowner qualifies for a loan modification. Mortgage lenders take into account an owner's monthly income and mortgage payment. Modifications are often reserved for people with mortgage payments that exceed 31 percent of their income.
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Warning
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Because some owners aren't eligible for a modification, you can expect your mortgage lender to request detailed information about your current financial standing. You will also need to write a hardship letter explaining your reasons for requesting a loan modification.
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