Mortgage Rate Modification: Do I Qualify?

By: James Sopher

Have you fallen behind on your mortgage payments? Is your banker calling you and threatening to foreclose? If you want to stay in your home, the best way to stop loan foreclosure is to negotiate a modification of loan, also known as a loan modification agreement, with your mortgage lender.

There are at this time a number of programs available that will do a modification of loan. Did you ever wonder if you might be able to get a mortgage rate modificationHave you considered looking into a modification of loan? Thousands of homeowners have discovered that a modification of their home loan is the superior fix for a mortgage that is delinquent. So, what circumstances increase the chances that you could be approved for a modification of loan??

You have been laid off from your place of employment or suffered some other monetary hardship.

As the saying goes, "stuff happens" and that "stuff" is often beyond our control. Perhaps your hours were cut back at work, or worse yet, you were laid off. Maybe there was an illness or death in your family. It cost money to deal with it, but it also caused you to lose time from your job. Auto accidents. Injuries. Unexpected events. The depressed economy affected your income. These are all legitimate reasons for getting behind on a mortgage that you were otherwise able to afford. Hardships such as these are generally accepted by bankers as justification for approving a mortgage rate modification.

Your home value has dropped significantly.

The nationwide real estate market has been in terrible shape for quite awhile now, resulting in widespread losses in home values. Unfortunately, if you are "upside down" on your home loan (you owe more than the home is worth) you may not be able to get a modification of loan. People in this situation are often better advised to do a short sale. In any event, it is certainly worth your time to discuss your options with a loan modification specialist. Even if you're not in a position to qualify for a modification of loan, they can help you to persuade your lender to approve of a short sale.

You have applied for a refinance but couldn't qualify.

Vast numbers of borrowers who are saddled with adjustable rate loans have tried to refinance. Unfortunately, most of these folks are getting turned down. Ever since the housing market went over a cliff and lenders started collapsing, it seems to have become almost impossible to get approved for a new home loan. Fortunately, many homeowners who were turned down for new loans have been able to work out a modification of loan agreement with their old lenders, and in many cases get a mortgage rate modification that resulted in more affordable house payments.

You just can't keep up with those high loan payments.

In the current tough market, thousands of homeowners, due to circumstances beyond their control, have seen their income drop substantially and can no longer afford the home they once easily made payments on. You may be able to get a loan modification that makes your home more affordable. The alternatives could be either a short sale or a short refinance.

Are you facing a possible foreclosure and don't know where to turn for help? If you want to stay in your home, the loan modification programs now available offer a good way to avoid foreclosure. Call a loss mitigation specialist to negotiate with the lender and protect your interests. Explore your options, then act quickly in getting help. A modification of loan can really help to put your life back on track.

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James Sopher is a retired real estate professional and free-lance writer. Learn how to Stop Foreclosure Now with a loan modification agreement. Reference: Modification of Loan.

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