What you need to know about Loan Mortgage Modification Process by Nancy Driscol

What you need to know about Loan Mortgage Modification Process
by: Nancy Driscol

Mortgage LOAN MODIFICATION Process

The Mortgage Loan Modification process provides for either a permanent change in one or more of the terms of a mortgagor’s loan, which allows a loan to be reinstated if the loan is behind or past due and results in a payment the mortgagor can afford. This site will give you some helpful tips and hopefully answer your questions regarding mortgage loan modification process.

So, what steps should you take as a consumer and what should you do. You should contact your lender to determine eligibility, but you may be eligible if, among other factors:

The home is your primary residence, and you have no ownership interest in any other residential property, such as second homes.

Your existing mortgage was originated on or before January 1, 2008 and you have made at least six payments.

You are not able to pay your existing mortgage without help.

Your total monthly mortgage payments due were more than 31 percent of your gross monthly income.

As of March 1, 2008 if you have a fixed rate mortgage
As of March 1, 2008 or the date of your loan application if you have an ARM

You certify that you have not been convicted of fraud in the past 10 years, intentionally defaulted on debts; and did not knowingly or willingly provide material false information to obtain existing mortgage(s).

Generally there is a formula that lenders use to determine that the mortgage holders total monthly mortgage payment on the new loan is less than the borrower’s aggregate total monthly mortgage payment on his or her existing mortgage(s), including any subordinate mortgage liens, based on a fully-indexed, fully-amortizing PITI payment. So, keep this in mind when performing your calculations of income and expenses.

The new mortgage, if approved, will replace all of hte current mortgages on your home. You will not owe any payments, fees or debts on mortgages you now hold. You will need to pay closing costs on the loan. You will receive a Good Faith Estimate of these costs. These costs can be capitalized into the loan. This is negotiable so work with a mortgage loan modification process counselor.

About The Author

Just another loan modifciation graduate. Luckily it went well. Now I work with various people helping them to get loan modifications to save their home when they want to sell their home or refinance their home. Most work successfuly. I like to write about these experiences and share with folks the ..I'm on a computer all the time now sharing these ideas. And the many attornies and mortgage professionals I speak with have given me some of their input that I like to share as well. I also have a family and like to blog.

If you want to read other articles I have you can check out some guest posts I write for a Real Estate Club. Theres some tips and tricks and mortgage help too.

Life is very different for me now, and maybe my writing can influence others to make a change for the good.

http://www.RealEstateGranite.com/Mortgage.html