New home loan modification rules coming
If you want to get a modification to prevent foreclosure, soon you will have to supply financial documents upfront — including paycheck stubs and an income tax form.The new loan modification requirement is the latest update in the Obama plan to reduce home foreclosure.
HAMP — the Home Affordable Modification Program — is designed to help homeowners who can no longer make their mortgage payments. If homeowners meet a long list of eligibility requirements, they can have their mortgages modified with lower monthly payments. Each HAMP modification is done in two stages. First, there is a trial modification that usually lasts three months. If the homeowner makes those three payments on time, and meets all the eligibility rules, the modification is made permanent.
Loan modifications can be an effective method for coping with an unexpected change in income….especially for home owners with adjustable rate mortgages. Lenders are providing an increasing number of modification programs in hopes of keeping home owners in their Colorado Springs real estate area homes instead of selling. If you are considering a loan modification, there are a couple of things to keep in mind. Firstly, it may take a few months to actually receive a loan modification approval. So be patient, the lenders are simply overwhelmed right now with modification applications. Secondly, not all loan modifications are the same, so make sure you read the details and fully understand the terms. And Lastly, make sure the modification is a fit for your current and future needs as loan modifications can be either temporary or permanent.
