15 June 2011 ~ 0 Comments

Single Most Important Factor For Loan Modification Success

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If we were to single out the biggest factor that will decide whether your lender is in a position to help you it is usually “Whether or not your hardship has been resolved”. The bottom line is this…

If it hasn’t been resolved, your lender will not be able to offer you a loan re-negotiation. Why? This is because the lenders are not legally allowed to begin a new agreement with you if you cannot meet the conditions of the re-negotiation plan.

If you find yourself in this situation there are three (3) options:

1. Increase your household income

2. Reduce expenditures

3. Resign yourself to giving up your home

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In a nutshell, if your situation is not resolved, or cannot be “qualified,” then your lender is not under any obligation to deal with you or offer you a loan remediation program. However, the key thing to remember is to leave this decision up to him or her. In other words:

It doesn’t matter if you feel that the lender will think your hardship is your own fault, or has been unresolved, send in the hardship package and accompanying letter

Why? There is always a chance it will be accepted. You see, with the national economy the way it is, lenders are under a lot of pressure to help homeowners get relief whenever they can. If you can show that you have the ability to meet the payments, they will probably qualify your application, even if they know the financial hardship was on your shoulders. Don’t mope or seek sympathy, just give them what they want.

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