What is a mortgage modification?
A mortgage modification is an adjustment to a home loan that reduces your monthly payments.

Who can get one?
Borrowers who are able to show that there is a significant chance your mortgage can get back to good standing. You are not likely to be approved for a modification if you took on a loan that was much too big for your income, even if pressured by a lender. Unfortunately, if your mortgage became troubled due to a lay off or unforeseen expenses and the situation doesn’t look like it will improve any time soon, your chances of getting a loan modification are not so good. However, if you got laid off and have another job secured for the near future, it might be possible to make a temporary adjustment to your loan until you start receiving income again.

How do I apply for a loan modification?
Don’t be fooled by all the advertisements from counselors and lawyers saying they can help you for a small fee. You don’t have to pay for counseling or legal help, everything you need is free. Talk with a mortgage counselor at an agency certified by the U.S. Department of Housing and Urban Development. Visit www.hud.gov and click on the foreclosure avoidance counseling link. Another option is to contact the bank or company handling your loan directly. Something important to be aware of is that lenders ultimately have the final word. Meaning that even if you qualify for a loan modification, a lender is not required to offer you one.

Interested in buying or selling a home in the Coachella Valley area? Contact Patrick Stewart Properties.