Home Loan Modification is a process by which a person facing financial hardship can get his of her loan terms modified. This helps home owners save their homes from foreclosure.
But not every can qualify for Home Loan modification. One has to contact the lender to know whether he or she is eligible for a Home Loan modification. Here are a few factors which if you fulfull then you may be eligible for a Home Loan modification:
- 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).
