Close to 2 million struggling homeowners are searching for loan modification help and many could benefit from a mortgage loan modification.  The toxic brew of a faltering economy, sliding home values and adjustable rate mortgages has left homeowners with few options for refinancing or selling their home.  The Federal Government is even considering offering inducements to lenders in the form of federal loan guarantees to those banks who give their borrowers a streamlined and standardized mortgage loan modification.

How do you qualify for a mortgage loan modification?  Well, not all borrowers will qualify for help.  Those who seek help to get a lower, modified loan payment must be certain qualifications.  Every lender has implemented guidelines that borrowers must meet in order to be granted a mortgage loan modification.  The two most important guidelines are debt ratio and financial hardship,  First, let’s review debt ratio.

Learn how to figure your own debt ratio to qualify

Debt ratio is a percentage figure that represents how much you spend each month on housing expenses out of your gross monthly income.  When you add up your principal and interest payment, property taxes and insurance, homeowners dues (if applicable) then divide that total by your gross (before deductions) monthly income, you will arrive at your debt ratio.  Every lender has set its own debt ratio criteria, but most are between 34% and 45%.  Your current housing expense will probably put you over the target ratio, so you need to figure out what new payment is required to fit within the guidelines.  First, learn what your lender’s debt ratio guideline is, then you can arrive at an ideal target payment to request in your mortgage loan modification.

Next, a financial hardship must be demonstrated to qualify for a mortgage loan modification.  Although each circumstance is unique, there are certain generally acceptable hardship situations:

1. Loss of income-job loss, reduced hours, etc.
2. Divorce or separation
3. Military service
4. Death of a family member or co-borrower
5. Medical expenses, illness, injury
6. Natural disaster

Know the 3 critical elements of a hardship letter

Writing a convincing hardship letter explaining your situaiton is an important part of the mortgage loan modification application.  Your lender is likely to grant a modification if you demonstrate an ability and willingness to pay the new lower loan payment.  Put a plan in place-contact your lender to learn about their guidelines, learn about how the mortgage loan modification process works by doing some research, then get ready to submit a professional and acceptable loan modification application.

You can get the help you need to understand the mortgage 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