San Diego has over one million inhabitants, and unfortunately, about 10 percent of them are underwater on their mortgages. As the nation continues its way towards economic recovery from the recent frightening recession, the latest round of home modification loans promises relief to hundreds of thousands of families who are on the verge of losing their homes. Recent studies have shown that about half of all homeowners who still owe money on their mortgage actually owe more money than their home is actually worth. In San Diego, this is especially a problem. Modification of mortgage programs are available to most all of these homeowners.
Loan modifications are an attempt to resolve the mortgage crisis in a way that will keep people able to make payments on their home loans while keeping lenders from losing their investments. The federal government has issued a number of modification of mortgage programs for 2011. Here’s what you need to know about the latest round of home modification loan programs.
The most important thing to understand about the modification of mortgages, is that they are almost all controlled by President Obama’s administration’s program Making Home Affordable, or HAMP. The Making Home Affordable program has been deployed to help individuals and families who are struggling to make ends meet to modify their current loan to a lower monthly payment that they can afford. In addition to the modification of mortgage, there are also resources available in the program Making Home Affordable that are designed to help owners of existing homes make their way through a deed in lieu, a short sale or refinancing to avoid foreclosure. There are also home modification loan programs in place to help homeowners who have failed to make their monthly mortgage payments catch up.
The first step in getting your home modification loan is to provide your lender with the paperwork they need to take advantage of the Making Affordable Home program and other modification of mortgage programs. This paperwork includes the home modification loan request form and letter of hardship, Tax Form 4506T-EZ and income verification are also required when applying for loan modifications. It is preferable to hire a loan processor, such as RTS Processing to work on your behalf at this stage. Lenders are overwhelmed and if you do not fit perfectly within the parameters of your lenders and the governments guidelines for home modification loans, you most likely will be refused even if you are qualified. RTS Processing is qualified to navigate the confusion inherent in loan modifications and can prepare your file to meet the requirements saving you a denial and possible lost time. After your lender has received all the necessary information in the modification of mortgage application, they begin to work with you and the federal government to work on an equitable home modification loan.
NOTE: Doing research and comparing the best home modification loan companies on the market, you will find the one that suits your financial situation the best. Be sure to ask questions and research any company or a service provider prior to payment. It is illegal in the state of California for a home modification loan company to receive payment before any work has been completed.
Hannah Wolf manages the modification of mortgage company RTS Processing where you can request a modification of your mortgage faster to stop any foreclosure or reduce your monthly mortgage payments to a manageable amount. Don’t wait to start saving thousands, call today!