Dallas Loan Modification is the reduction in interest rates of a loan borrowed and also the lengthening of the time to repay a loan. This process is done by the lender of the loan as a response to someone’s incapability to repay a specific loan.
How a borrower qualifies to obtain Loan Modification
· One must have gotten his/her mortgage on before 1st January 2009 and also owe a maximum limit of $ 729750 on their primary home. This can also include $ 934200 rental property.
· One must have adequate documented pay that can be used to pay the mortgage if it was to be modified.
· There must be evidence of financial sufferings from the subject involved. The hardships must be documented and signed in an affidavit.
· Home owners seeking Dallas Loan Modification must provide the following:
Recent pay stubs, tax returns and a l its of their assets and estimated values.
Once the information is gathered, the borrowers can now call their mortgage servicer and then ask for the loan modification process.
One does not have to be late on the payments so that they may qualify for a Chicago Loan Modification, it is just important to show that you are likely to default on payments is a swift action is not initiated by the lender.
For this process to be smooth, it is advisable that a lawyer is hired so that he/she helps you through the process.
Impact of loan modification on your credit
The person partaking the Home Affordable Modification Program will not really see a slope in their credit notch. This is because the government has set up obligations that lenders report the Home Affordable Modification Program (HAMP) in a manner that does not turn to be disastrous on the borrower’s credit.
However, this is not a guarantee that your credit score won’t be impacted by the Jefferson Legal Group program.
The alternative to Loan Modification
In case a person is not lucky enough to qualify for a loan modification, there are more other ways to go about this issue of Chicago loan modification like Jefferson Legal Group.
They include:
· Short selling the home
The party and the bank negotiate and end up in a transaction that will allow the party sells his/her home for less than what he/she owes the bank.
· The home can also be given back to the lender using the means called “deed-in lieu foreclosure”
· Lastly, the party involved can go find a renter who will then rent the home and then use the money to repay the loan giver.
· Acquiring forbearance
This means that the lender reduces or suspends the loan payment usually for a period of up to 90 days.
Factors that may lead to a loan modification
The following are some of the factors that can lead to people to seek load modification of Jefferson Legal Group:
· The loan borrower having unexpected low income
· Financial hardships as a result of death or even diseases to the borrower.
· A programmed alteration in the structure of the loan that the borrower was not aware of.