Counseling Help Can Pave The Way For Homeowner Loan Modification

If the homeowner has already missed payments, mortgage lender has to carry out evaluation of income.

The gross monthly income of a borrower should be able to cover 31 - 38% of mortgage. Homeowners can submit payment for a three month trial period to test if they can pay with the new monthly payments. The successful trial period will allow homeowner and mortgagor to make the home loan modification permanent."

Counseling is advised for homeowners who cannot avoid more than three-month defaults in their mortgage payments. Their financial situation may be bad enough to be considered for loan modification help guiding them to get back in control of their finances. This is one of the few first requirements in the new Obama loan modification program new guidelines, as detailed by Freddie Mac and FHFA. These guidelines are valid for all lenders and servicers as part of their trade practices. USLOANZ can give appropriate help to make your mortgage refinance loans according to your income and help you prevent foreclosure. Home loan modification gives important changes to your loan arrangement which will help you avoid the monthly payment defaults by even decreasing your mortgage refinance interest rate to as low as 2% if necessary.

The Obama government has also announced additional finance to help homeowners with continued unemployment with two more Government loan modification programs to prevent foreclosure. The Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets that is the Hardest Hit Fund which will make available two billion dollars of additional funds for HFA programs for distressed homeowners helping them make mortgage payments to their banks even if they are unemployed. In the beginning homeowners are supposed to go with the new payment amount for three months. On successful testing and completion of three month payments the loan modification can be made permanent.

The Housing and Urban Development (HUD) started a $1 billion Emergency Homeowners Loan Program which provides help to homeowners at risk of foreclosure because they have experienced a large reduction in income due to involuntary unemployment, underemployment or a medical situation. A home affordable modification program can offer legal service to enable people represent their cases properly to take advantage of these schemes. An attorney will get all proposal documents ready for submission.

These documents include cover letter, hardship affidavit or letter, and homeowners' loan modification proposal. Additionally, homeowner must submit proof of primary residency to the concerned property for successful loan modification to be completed.

If the homeowner has already missed payments, mortgage lender has to carry out evaluation of income. The gross monthly income of a borrower should be able to cover 31 - 38% of mortgage. Homeowners can submit payment for a three month trial period to test if they can pay with the new monthly payments. The successful trial period will allow homeowner and mortgagor to make the home loan modification permanent.

Another pre-requisite eligibility for loan modification is according to what type of home property it is for example either a one-unit family occupied condominium or a primary residence manufactured home. Additionally, the properties should not be beyond repair.

Lenders guarantee help to homeowners to benefit from a loan modification if all pre-requisites are complied. Even if lenders stand to lose money temporarily if foreclosure is declared, it doesn't mean homeowners can be unworried about the possibility of foreclosure. In fact, homeowners should not wait until the notice of foreclosure, but contact their lenders as soon as mortgage defaults become a major problem. They should immediately initiate preliminary requirements to avail a loan modification.