Nowadays, most of the homeowners all around the world are opting for loan modification /foreclosure prevention. With the help of loan modification, the homeowners can easily get assistance from their lenders to prevent foreclosure. Under this new program of loan modification, the interest rate related to the mortgage is reduced to a great extent. Moreover, some portion of the principle amount is also deferred.
Loan modification / foreclosure prevention is a program which is available to the families and homeowners who are facing several financial problems such as:
- Lost jobs or lower salary than before.
- Rise of bills and other expenses everyday.
- Disability expenses.
- Sudden death of a family member who provided monetary support.
The above mentioned reasons are enough to get loan modification/ foreclosure from the lender or owner.
Lenders consider few things for loan modification / foreclosure prevention
Before modifying the loan, the lenders consider few factors such as the income and income tax documents of the borrowers. They also check the borrower’s credit, amount of the loan, bankruptcy history, value of the property and mortgage payment history. Finally the circumstance under which the borrower is facing financial problems is studied and only then a decision is made.
How to apply for a loan modification / foreclosure prevention?
If you are planning for loan modification or foreclosure prevention then you have to fill in an application form and write a letter. The letter contains the explanation of how and why you are facing financial hardships. Loan modification / foreclosure prevention is a long process which can sometimes take months for settlement. It is not necessary that the lenders will always give a positive response to the application. Thus, it is necessary to keep a track of the application and inform the lender about the importance of loan modification / foreclosure prevention for you.