Loan Modification is the process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender, with the goal of an interest rate and/or principal reduction.
There are various loan modification programs. One of the most well known is the HAMP program, described below. Other programs are lender and/or investor specific, in which the respective entity has its own guidelines to modifying a loan. Please note, not everyone qualifies for a loan modification, but the following HAMP guidelines will provide you an idea as to the criteria for a loan modification.
According to Fannie Mae, the Home Affordable Modification Program (HAMP), is designed to help as many as 3 to 4 million financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. The program provides clear and consistent loan modification guidelines that the entire mortgage industry can use. Visit makinghomeaffordable.gov for full information.
Borrower eligibility is based on meeting specific criteria including:
Monthly payment adjustment
After determining a borrower's eligibility, a servicer will take a series of steps to adjust the monthly mortgage payment to 31% of a borrower's total pretax monthly income:
Contact us at 1-(866)-326-5155 to find out if you may qualify for a loan modification. Se habla español.