Mortgage Blog On Georgia Financing

Loan Modifications - Can I qualify?

As you might have learned recently, if you are currently behind on your mortgage and you have had something drastic happen either personally or financially , a Loan modification might be your answer to saving you from Home foreclosure.

How does it work you may ask? First lets talk about why the lender would even consider such a thing. It may cost the lender tens of thousands of dollars to foreclose on your home and in the mean time not getting any monthly payments or ( interest) from you while they process your foreclosure. Your lender might consider to restructure your loan so you will make your monthly payments. lets not kid ourselves, they will not chop off 50% off your current mortgage but they will either take up to 15% off the mortgage plus a few basis points off your rate. Not bad if you can qualify.

So what they will need is look at your complete current financial condition and make sure that a loan modification makes sense for you and most importantly the lender. They will have you complete a PFS ( personal financial statement ) and some other documents so when they go into "commitee" they will have a complete picture on your current financial status. Does it make sense?

The most asked question we get are 

 " I got my loan as a stated Income loan program. I can afford a mortgage payment but not the payment I have now, I just need a break, can a get a loan modification?" the answer is yes. But , you must show the ability to repay the loan.

"I have bad Credit" the quick and down and dirty answer is "Sooo" - Just as long you have nothing on your home title except your current mortgage(s)  ie: No - tax Liens, No - Judgements etc.. that have attached to your current homes title . You should be fine.

The process can take 30 to 120 days to process depending on the lender.

Are you?

• In a adjustable rate loan
• Current behind on your mortgage?
• Or Is your Loan "upside down" ( loan amount exceeds your value)
• Loss of Income from one of the Borrowers.

Ok , Maybe all you want is to do is downsize but can't sell your home because there is no room for realtor fees , closing costs and repairs - that's when a short sell comes in handy.