Before you being to pursue a loan modification with your lender, research the loan modification laws that pertain to you. These laws will influence your ability to get a loan.
If you own a home, you need to know the loan modification laws that are in effect in your state so you will know if it is possible for you to get a loan modification from your lending institution. The Home Affordable Modification Program lets homeowners from all around the United States apply for a loan modification if they are experiencing financial difficulties. However, different states have different laws and different lenders have different guidelines. You need to know them in order to know if you qualify.
State loan modification laws generally outline who is able to handle modifications such as mortgage brokers and attorneys. It is not easy to find these laws, but it important you know them because they will determine your success. You need to use the right sources, like your state's Real Estate Commission. If you know these laws up front, you can save time and money and possibly save your home.
Lenders have guidelines, not laws, but it is still important you know them. You must fit these guidelines exactly if you want to get your modifications approved. Usually these guidelines revolve around these factors:
* The balance of your mortgage
* Your credit rating
* Your payment history, specifically if you have made late payments
* The values of your property vs. your mortgage balance
* If you have filed for bankruptcy
* Your financial circumstances
Lending institutions are very strict about these guidelines. Before doing anything, it is in the homeowner's best interest to do some research to find out the exact expectations. If you don't do this, all the time you spend doing paperwork and filling in applications will be wasted.
These laws have been put into effect because there have been many loan modification scams and frauds in today's market. Homeowners who are facing desperate circumstances with not way out often trust any agency that offers them hope. These fraudulent companies charge an upfront fee that can be into the thousands of dollars. This fee is not necessary to begin negotiations on the borrower's behalf, but is simply a fabricated fee charged to rip off desperate people.
Before you do anything regarding a loan modification, investigate the laws regarding the Home Affordable Modification Program in your area. Check with your lender about their guidelines. After you have determined that nothing will prevent you from being eligible, you can proceed. You can get a free consultation under the Home Affordable Modification Program that will guide you through this process and will provide help on your behalf.
For essential tips and facts about how to get approved for a Loan Modification, Visit loan modification guide and resource: http://MortgageModificationLoan.net/
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