If you have lost your job because of the recession then chances are slim that your mortgage will be modified by the lender.But Wait….Read on to know more.
Is it impossible to get loan modifications for the unemployed ?
=>People who have a long employment history and have just lost their jobs because of the recession will definitely have higher chances of approval than the people who have been unemployed since a long time,
=>If you feel that you cannot pay the payments even after the mortgage gets modified then the lender would also identify the same thing and reject the application.simple detection , isn’t it? So just before applying for the mortgage modification,ask yourself the following question :::
“Will i able to manage the monthly payments after the loan modification?”
If YES ===> You have very high chances of approval.
If NO ====> lenders are surely going to reject your loan mod application.
Hope you are now clear about the answer to your question.
Things to remember about the loan modification:
- Home owners have a huge advantage – lenders are always willing to provide a solution to you rather than allow the foreclosure to happen,
- Both the application and the hardship letter is vital if you want approval for the loan modification,
- It is very very very important to write a proper,precise and clear hardship letter – i am stressing this point because this letter is going to inform the lenders about steps you are going to take to come out of the mortgage trap – you need to convince them that you are very serious in paying the mortgage back and show them what you are thinking about the solutions to avoid foreclosure,
- If the lender feels that you are going to manage the mortgage after a mortgage mod,you are sure to get the loan mod.
- The debt to income ratio is a very important factor and if you are unemployed,this factor might help you very much.You will have an edge over other unemployed people[who are applying for a mortgage mod] because of the debt to income ratio.
