You may be struggling with high mortgage payments and desperate to get relief.  The good news is that their is help-more now than ever-if you know how to get it.  This means that successful homeowners will know and understand how to complete their application so that they have the best chance of meeting the loan modification criteria and getting approved by their lenders.  The bad news is that many deserving borrowers will be turned down because they were not prepared.  How can you learn what the requirements for approval is?  Here are some basics to get you started.

Every lender has it’s own loan modification criteria, but the truth is that most of the guidelines are basically the same.  The new federal loan modification plan, Obama’s Home Affordable offers standardized requirements and modification terms-easy-no negotiating, either you qualify or you don’t.  But you can certainly increase your chance of approval by knowing those guidelines and then completing your application accordingly.

Here are the basic guidelines for most loan modification programs:

1. 1. You must have or be experiencing a financial hardship that is out of your control.  Job loss, reduced income, divorce, illness, death, military service, interest rate reset are some of the reasons your lender will consider.  You must be able to write a convincing hardship letter that tells your story and gains your banks empathy.  There are 3 critical elements to a compelling letter, do you know what they are?
2. You must be able to document your income.  Part of the approval process will be to provide your pay checks, tax returns, award letters, etc.  If you can’t prove your income, you will probably have a very difficult time getting approved.  This is a full disclosure process.
3. Another loan modification criteria is proving to your bank in black and white that you have implemented a new budget and that if given the modification, you will be able to afford to pay and maintain the new lower payment.  The last thing the lender wants is to modify your loan only to have you fall behind again.
4. You must be able to meet the required debt ratio criteria-under Obama’s plan that is 31% of your gross monthly income. Other programs range from 38-45%.  This means that the new payment, including taxes, insurance and homeowners dues falls within those guidelines.  Several methods may be used to reach that goal-lower the interest rate, lengthen the term or defer some principal.

If you are not familiar with what loan modification criteria must be met or how to complete your application to prove that you can meet the requirements, do not talk to your lender until you are prepared.  Many homeowners have been declined just because they unknowingly told their bank the wrong thing.  When you are on the phone with your lender, you do not want to be stumbling around-you need to have your paperwork prepared and fine tuned. 

Need help to learn about loan modification criteria, calculate your debt ratio and prepare your application paperwork?  You can get the help you need to apply and qualify for a loan modification by ordering and downloading the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read, home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to qualify for the Obama Federal loan modification plan.

Need help completing your loan modification forms?  Find out about our Customer Assist program-you work one-on-one with your very own expert to make sure your application is completed correctly. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Home Edition Loan Modification Kit with Customer Assist