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Posted by: Maricopa Lawyers on Nov 13, 2016

It’s not uncommon for a homeowner to request a loan modification in order to make their payments more affordable. Lenders receive requests every day from people wishing to lower their mortgage but not everyone qualifies for a loan modification. In order to get a modification on your loan you must meet certain criteria and have proof that your financial circumstances have changed. If you meet the following qualifications, you may be able to get a loan modification.

Qualifications For a Loan Modification

 

Proof of financial need

You must show your financial need in order to receive a loan modification. This need must have come from something such as a job loss, the death of a spouse or child, illness or a disability. You cannot qualify for a loan modification if you need it due to an excessive amount of debt. You must be able to prove to your lender that you have gone through a major life change and it has affected your ability to make your loan payments.

Ability to pay modified payments

You must be able to prove that it will be easier to make your payments if your loan is modified. If you have temporary financial problems, you must be able to show that you will be able to afford the new payment for now but will be able to make the full payment a few months later.

Completed Application

If you believe you qualify for a loan modification, you must first contact your lender. Your lender will have you fill out an application and complete a hardship letter. The application includes how much you make, your debts and your monthly expenses. The hardship letter will explain why you need a loan modification. In the letter you will notify your lender of the details of your financial hardship.

After submitting your application and hardship letter, your lender will review them and make a decision.