At-risk homeowners trying to learn about the loan modification process are finding themselves frustrated and confused. Are you wondering if a lower payment may be the answer you are looking for to help avoid foreclosure or be able to afford your home? If so, then you need to read about the process so you will know how to qualify and what to expect. To help you learn the basics, here are the Top 10 Questions and Answers about loan modifications:

1. What does “loan modification” mean exactly? A loan modification is a permanent change in one or more terms of a home loan that results in a more affordable monthly payment. A delinquent loan is brought current, and the interest rate may be lowered, a longer term offered and sometimes a reduction in the principle balance. A successful loan modification should offer the homeowner an affordable and maintainable monthly loan payment.
2. Will I have to pay all the late fees & penalties my lender has added on? Most banks are offering modification programs that waive the late fees and penalties. The federal program, Making Home Affordable Modification, dictates that the lender waive any late fees and penalties. Always ask for a detailed accounting and description of all fees from your lender-some fees may not be justified or allowable and should be waived.
3. I can’t afford to pay my loan current-can my missed payments be added back in to the loan? Generally your lender will allow your missed loan payments to be added into the new loan balance and spread out over the term to make it affordable. Some lenders may require the first months new loan payment as good faith for the new loan modification. Most lenders are participating in Obama’s home rescue plan, Making Home Affordable Modification-or HAMP-under this plan you do not have a new payment for at least 30 days, and you are on a 3 month trial for the new modified payment. You must pay this new, lower payment on time for the first 90 days, then that payment is fixed for 5 years.
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   Federal Plan

   How can I find out if I will qualify for a loan modification process with my lender? The number one requirement your lender is looking for is your ability to pay the new loan payment now and in the future and evidence that you have suffered a financial hardship. When you provide your lender with properly completed financial statements, you prove to your lender that you can afford the new payment.

5. I am not delinquent yet on my payments-but I am struggling and foresee a problem-can I still get a loan modification? Yes, the Federal Government is strongly encouraging lenders to reach out to all borrowers with adjustable rate and option arm loan programs now before they go into default. If you see a problem continuing to make your payments, don’t wait, contact your lender to start the modification process. Bear in mind, the homeowners already in default will receive assistance first. You need to be persistent to get the loan modification process started.  You must be able to meet the imminent risk of default calculation, the software program, Loan Mod QUick App, will calculate this for you.
6. What is an acceptable hardship situation? Usually, if you have experienced a severe change to you financial situation due to divorce or separation, medical issues, military service, death in family, loss of job or transfer, natural disaster your lender will consider your modification application. However, each situation is unique and viewed individually.  A well written, compelling hardship letter will help your bank determine your situation and intentions.  There are a few key phrases that your lender will look for-imminent risk of default is one-learn the others to write an effective letter.
7. Will a loan modification stop foreclosure? Yes, that is the purpose of the loan modification. Your loan is immediately brought current upon completion of the loan modification process and foreclosure is averted.
8. How can I find out what the approval requirements are? The federal plan called HAMP has standard, published guidelines. Lenders use a 4 step formula to determine who qualifies. You can learn and use this very same formula to prepare your own acceptable application.  The Complete Loan Modification Guide kit will take you step by step thru the application process and show you exactly how to prepare your own acceptable application.
9. What fees are involved? Can I do it myself? No, there are no fees involved in a loan modification when you work directly with your bank. There is no escrow, title or appraisal required. You certainly can work directly with your lender to find a loan workout solution. President Obama is warning homeowners against paying anyone a fee for a loan workout-there are many scams that promise results but leave the homeowner without any results. You can do it yourself, just make sure you have a good understanding of the modification process-once you know what your bank needs to see to approve your application, you can prepare your paperwork properly.  Take advantage of the best selling resource for homeowners to help you figure all this out-The Complete Loan Modification Guide kit & software will make it alot easier to get the results you need and deserve.
10. So, how do I get started with the loan modification process? IMPORTANT! Before you contact your lender or a loan modification company, do your homework-learn as much as you can about the process so that you can make informed decisions. You must be able to prepare your financial statement so that it shows you fit into the federal HAMP guidelines. Use a software program designed just for homeowners that mimics the federal program. Simply input your own income and expenses, and all the calculations are done for you. You see immediately if you need to make any adjustments to your budget.

Save yourself hours of stress, confusion and frustation-get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier-end the frustration-Visit myloanmodificationcenter.com and order today.