In these days of worldwide financial crises, it is very easy for a lot of worried people to become overwhelmed by late mortgage payments. Many of those who have experienced major hardships or life changing events such as loss of a job, medical emergencies or divorce, have found themselves unable to pay their mortgage. These situations have driven many to the point of depression and unending feeling of helplessness.
To remedy this predicament, the government with the cooperation of lenders have come up with a rescue plan that proposes to help desperate homeowners who are about to lose their homes due to default in mortgage payments. It is called mortgage loan modification. It is similar to mortgage refinance but instead of seeking a new loan to pay for the existing loan, the terms are simply modified so that the mortgage payments become more affordable and fit within your financial capabilities.
Refinancing remains a viable option to solve this kind of problem but for a lot of homeowners deep in debt; this has ceased to offer any benefits at all. Mortgage loan modification is their better option, especially for those who have found themselves in dire financial hardships that have prevented them from availing of other payment options.
For those who are thinking obtaining mortgage loan modification, here are the most common standards for qualification. You are eligible if:
* You have experienced hardships or drastic change in financial status and you have the documents to prove it.
* You have missed 3 mortgage payments or more
* You own and occupy the property as your primary residence
* You have not filed bankruptcy
All lenders follow basic rules and standards regarding how they accept application for mortgage loan modification. However, many of their programs vary in how they work so it is important that you contact your lender to make sure that you are qualified.