| When a borrower falls behind with his mortgage | | | | How Much Burden Will The Loan Payment Put On |
| payments to the lender, he or she may opt to apply | | | | Your Income |
| for mortgage modification. In a nutshell, mortgage | | | | Guidelines for the newly negotiated loan modification |
| modification is a name given to a collection of | | | | clearly state that at least 30% of your gross income |
| relaxations that lender bestows upon the borrower | | | | should be allocated for loan repayment. There might |
| considering the circumstances which are keeping the | | | | also be other surcharges that are to be taken into |
| borrower from making the payments. But, not all | | | | consideration. The amount and extent of information |
| borrowers can apply for mortgage modification; there | | | | you have to divulge to the lender varies from one |
| are certain predetermined mortgage modification rules | | | | lender to another. |
| that are to be followed. Listed below are some of the | | | | Hardship Letter |
| rules: | | | | Last but by no means least, this last requirement for a |
| Verification Of Borrowers Identity | | | | mortgage modification is perhaps the most important |
| This is the first basic security step in which the | | | | part of acquiring a mortgage modification. Hardship |
| borrower is asked to verify his/her identity by | | | | letter is a detailed document that makes it evident to |
| presenting social security number, driver's license or | | | | the lender that borrower is facing circumstances which |
| birth certificate and other documents of such nature | | | | are financially exhaustive and a mortgage modification |
| that will assist in authenticating individual identity. | | | | is imperative. Absence of hardship letter would mean |
| Always Apply For Primary Residence | | | | outright refusal of mortgage modification and hence |
| Mortgage modification is always granted for your | | | | the document should be compelling, well made and |
| current and primary place of residence. An applicant | | | | comprehensive; seeking professional help while |
| has to be mindful as to not apply for mortgage | | | | preparing hardship letter is strongly recommended. |
| modification for place of business, summer home or | | | | Obama's Loan Modification Plan (HAMP) Home Owner |
| any other place. It has to be for the house, apartment | | | | Affordability And Stability Plan |
| or any other form of dwelling where the applicant | | | | Considering the present economic crisis that has hit the |
| resides in permanently. | | | | country, present government to aid the homeowners |
| Never Hide Any Financial Information | | | | has announced an all-inclusive package worth $75 |
| Some borrowers think they can make a difference by | | | | billion. If anyone wishes to be a recipient of this bailout |
| covering up certain details and aspects of their | | | | program, certain predetermined criteria are to be met |
| financial statement that would make their current state | | | | which are described below: |
| of things look deplorable. Nothing could be further from | | | | The current mortgage amount must be less than |
| the truth and inadvisable. The lender will have all the | | | | $729,750 and the mortgage must have been |
| financial information at its disposal under any | | | | sanctioned before January 1, 2009. The mortgage |
| circumstances so the borrower should be honest and | | | | repayment is equal to more than 31% of home |
| help his or her case along. All the information provided | | | | owner's gross income. |
| to the lender should be complete and unaltered. | | | | |
