People will do everything just to avoid foreclosure of their property. Knowing how much money you have invested in buying your house and the efforts that you have made just to come up with the money that you need to buy the house, makes it hard for you to let go of it. You have to conduct a research on how you can stop foreclosure. This is when you can think of mortgage modification. So what is a mortgage modification anyways and how it can help you avoid foreclosure?
What Is Mortgage Modification and How It Works
Mortgage modification is an agreement between a borrower and a lender. You have to discuss important issues with your lender like why you failed to make repayments for your mortgage and ask them to modify some terms of the mortgage or the whole agreement.
Mortgage modification was designed to alleviate the burden that people experience when paying their mortgage. This will help them reduce their monthly payment thus making it affordable. The borrower is only required to pay 31% of his income for the mortgage. The Department of Housing and Urban Development together with the federal government made their updates for their mortgage modification program.
An excellent idea that can help you modify your mortgage is by applying for the Home Affordable Modification Plan or HAMP. With this plan, you can be able to modify the components of your mortgage in a way that you will find it easier to make repayments. You can choose from the following modification:
• You can decide of lowering the interest rate of your mortgage.
• You can extend the time for you to repay the mortgage.
• You can also think of reducing the loan principle.
Are You Qualified for the Mortgage Modification?
If you want to find out if you are eligible to get the mortgage modification then you have to meet the following qualifications:
• You have acquired the mortgage on or before January 1, 2009.
• You have borrowed up to $729,750 on your primary house.
• You have borrowed up to $934,200 on a 2-unit property rental; $1,129,250 on a 3-unit property; or $1,403,400 on a 4-unit property.
• Make sure that the property is not yet condemned.
• You are going through financial difficulties thus affecting you to pay the mortgage.
• You can provide documents to prove that you are qualified for the modified payment.
• You were not involved to any wrongful actions related to mortgage transaction within the last 10 years.
If you are interested applying for a mortgage modification in Texas, then should prepare your financial information like your income and expenses. You also have to collect the information about your mortgage where you can find the loan number. Once you have organized all the documents needed for a mortgage modification, then you can call a housing consultant for guidance before you start negotiating with the lender. They will tell you if you are really qualified for the mortgage modification.
Still not sure where to turn? Contact Save My Texas Home by calling 512-271-5044 or filling out the form on this page. We’ve been helping Texans with loan modification as well as several other ways to save their homes for years! Let us help you too. Our services are always free.