How to Get My Loan Modified - Mortgage Loan Modification Assistance
There’s no question about it, the home loan industry is changing and stated income loans requirements just aren’t what they used to be.
These days your average mortgage lender is going to require full documentation loans and as a buyer you will need to qualify according to a number of much stricter standards including traditional debt to income ratio calculators. This change is seriously effecting the housing industry especially in expensive real estate areas such as California and Florida where so many home owners bought homes on with adjustable rate mortgages and stated income loans and are now foreclosing in a market with less buyers who can qualify – and therefore buy – homes in the areas, thus driving prices down.
Adjustments for adjustable rate mortgages will continue through the next few years into 2011. The reality is that many homeowners will not be able to afford their mortgages and will ultimately face foreclosure. If this sounds like you then you should probably consider trying to negotiate with your lender or even worse, begin to prepare for foreclosure. If you do go into foreclosure your credit will be hurt for seven years so it is of course wise to do all you can to avoid this, including contacting an attorney who specializes in foreclosures and loan modifications!
It is fairly common to here from people who have faced foreclosure, complaining that their lender would not discuss a loan modification until they were at least several months behind on their mortgage payments. Of course, if this happens your credit will have already been adversely effected and in many ways it will be to late, such as you will have likely diminished your ability to get a home loan at market rates for many years to come.
The thing to do in this situation is to use a loan modification company before you find yourself in this situation. A loan modification company will have an attorney on staff and is your best chance of avoiding foreclosure as well as a ruined credit score. By getting a loan modification and reducing your interest rate to a reasonable level you may be able to keep your home and in certain instances you may even be able to reduce your principle with a loan modification