Tips to Modify Your Mortgage Loan

When we talk about mortgage loan we essentially mean home loan because people mostly keep their home at stake. In order to overcome the financial crisis people often keep their home at a mortgage, and later on not being able to pay the loan. If you are also facing a problem in paying the loan then the best thing to do is to modify your mortgage. It changes your current loan terms as it lowers your current interest rate or principal balance than the present market value.

Although different banks have different processes to modify the home loan, there is a general set of guidelines introduced by the federal bank. In order to be eligible for the home loan modification there are a few criteria that you need to meet up. Some of them are listed below.

1. If you are not being able to pay the current mortgage loan due to illness then you are generally being considered by the banks to modify the home loan.

2. You are also eligible for the modification of it if you loss your job.

3. Sudden failure of business also makes you eligible for the home loan modification.

4. Another important criterion of eligibility if you are relocated in your job.

5. If you face any natural or unnatural disaster then you are considered for the home loan modification.

In addition to the criteria of eligibility there are a few steps to follow in order to modify the home loan. The steps are as follows.

1. Before going for it you should write down your monthly budget because once you approach the mortgage company they might ask you several questions on your monthly budget and you are expected to answer them. They might ask you about your monthly income and expenditure on the basis of which you will be considered for the modification of it. So you have to have a certain amount of income in order to be considered.

2. If you are not eligible for mortgage modification because of your income then someone of your kith and kin can write a letter to the bank on your behalf stating that he or she will support you by contributing some amount of mortgage payment. Some banks might consider this, some banks might not.

3. Write a letter to the mortgage company informing your circumstances and the reason for not being able to pay the mortgage loan. Do not be too hard in writing but use certain words that induce sympathy so that they consider you it.

4. Approach the mortgage company and request them to connect you to the loan workout department. Describe your financial situation to them so that they can guide you through to the modification of it.

5. The mortgage companies are supposed to put you to the case worker within 3 weeks but if they don’t then you need to do constant and consistent follow up.