Finally, some good news that makes sense for borrowers needing loan modification help.  Fannie Mae, the mortgage giant and the driving force behind one of the largest streamlined loan modification programs, has announced that it will now allow borrowers who face financial difficulty to request early loan workouts, even if they have never been late on their payments.

This policy change has the potential to help thousands of people who are facing job lay offs as the recession continues.  In the past, most lenders required borrowers to miss mortgage payments and would not offer any loan modification help until the loan was 60 to 90 days delinquent.  This caused additional financial hardships for homeowners as late fees and penalties racked up resulting in a large past due balance that simply could not be paid by most borrowers.  Not to mention the damage done to the credit of previously good credit customers.

Now, borrowers who qualify will agree to a trial period of reduced payments for 3 to 4 months. If those payments are made on time, the modified loan terms could be made permanent.  If a homeowner knows that they have or will experience a change in their finances that will cause future payment problems, they can now contact their lender to apply for a loan modification that will accomodate that change.  Say for example that a borrowers income had declined $500 per month due to a lay off or reduced hours, the lender would reduce the monthly payment to cover that missing income for the trial period.

Keep in mind that the lenders and servicers will carefully review the loan modification application paperwork carefully to verify the facts of each case.  The borrower will have to submit the proper paperwork and income and asset documentation so the bank can make a determination.  A credit report will be run as well to verify the information submitted is accurate.

Several lenders have already begun offering early work out options-JPMorgan Chase loan modification programs as well as Citigroup loan modification programs allow for borrowers who are not yet delinquent to apply for assistance.  The Bank of America loan modification department has announced a similar program.

For homeowners who think they are facing future payment problems, now is the time to begin the loan modification process.  Borrowers need to understand the loan modification approval process so that they can prepare an acceptable application to their lender.  Taking the time now to research, learn and prepare will provide the opportunity to present the loan modification proposal to the lender so that it will be approved quickly and eliminate the possibility of delinquent payments and damage to credit scores.

Don’t wait-get started today-you can get the help you need to understand the loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook 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. 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