Which homeowners qualify for loan modification programs and how can you improve your chances of success?  While each lender has their own unique guidelines for acceptance, there are some general requirements that borrowers must meet if they hope to get their loan modified to a new, lower monthly payment.  Knowing this information ahead of time will help borrowers submit their application properly and increase their chances of getting the help they need and deserve.

Really, the bank wants to know one thing-Can the borrower afford to pay and sustain the new lower loan payment if granted one of the loan modification programs.  Unfortunately, a large percentage of homeowners who have already received loan modification assistance have re-defaulted.  This may due to the fact that desperate homeowners accepted terms that were not actually beneficial, or perhaps were victims of the declining economy.  The long term goal of these loan modification programs is to provide an affordable and sustainable payment that will keep the borrower in the home and avert foreclosure.

Before applying for help with one of your lenders loan modification programs, make sure that you have a clear understanding of what their requirements are.  It is pretty hard to qualify for something if you do not even know what the qualifications are.  This is important because the lender will ask for financial statements that detail income and expenses, so these must be completed properly.  Many lenders like to see a small amount of disposable income left over at the end of the month after the new modified payment has been calculated, as assurance there will not be a re-default.  Usually $200-$300 will suffice.

Another important factor in qualifying for loan modification programs is called debt ratio.  Debt ratio is calculated using the total monthly housing expenses divided by the gross monthly income.  Most lenders are targeting the new modified loan payment to be somewhere between 34%-45% of the gross monthly income.  Homeowners are advised to sit down and really determine what an affordable home loan payment would be and find out if that is attainable through a combination of interest rate reduction, longer loan term or even principal forbearance.  Then plan the family budget accordingly so that with the new payment you will meet the lenders guidelines.

Getting help with loan modification programs will take some research and learning about how the process works, but it can be done.  Remember the 3 “P”s-Preparedness, Persistence and Patience.  Prepare by learning as much as possible before contacting the bank.  Learn the guidelines and prepare you application accordingly.  Be persistent, lenders do not easily grant loan modifications and can offer resistance.  Homeowners don’t give up-even if told no the first time-call back and speak with someone else.  This is your home and security-it is worth the effort.  Finally, patience is what will keep you going.  The loan modification process can take up to 180 days, so make a commitment to hang in there until the goal is reached.

You can get the help you need to understand loan modification programs 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