Loans Modification: See If You’re Qualified

The economic recession is causing a lot of turmoil in the country today. It has affected a lot of people, and you might be one of the millions of homeowners who are asking for loans modification in order to save your home. There are many people who would like to give their advice on how you can do it, and it’s so easy to believe claims that cannot substantiate results. But before you jump onto the first bandwagon who offers nothing but exclamation points, make sure that you know if you qualify for it first. Here are some tips to help you get started:

First, before you think you're qualified for loans modification, look at the disclosures that you've received within a certain time period. Some of these disclosures are made to make sure that buyers and lenders follow them seriously. If you did not get any within a specific time, you may ask your lender to modify your loans instead of facing bigger legal issues.

Second, verify if your lender would rather renegotiate your loans than have your home foreclosed. Usually, this scenario happens when you can't complete your payments or you cannot sell your home. The reason is because the foreclosure process is a huge dent to your wallet especially when you combine it with your loss. And also, the government usually asks lenders to suggest loans modification before they suggest foreclosure.

Third, check to see if you are suffering from these situations: death, divorce, separation, military service, loss of job, sickness. If you’ve checked one of them, then you might be a candidate for modification. The situations given above are legally accepted as a form hardship one is going through now, and it might be a temporary situation on your part. Therefore, you're given more leeway for tolerance.

Fourth, homeowners that are involved in a rate adjustment or even some unaffordable loan payments are great candidates for loans modification.  Many of them have problems paying off their bad loans, but in these cases, the government often asks lenders to give a the modifications to the borrowers.

The best time to start assessing your situation is now. Remember, the more you delay things, the more difficult it is to get yourself out of the rut. So start assessing your situation right now, gather your documents, be honest with yourself, and consult other experts about loan modification. You never know -- their advice might save you and your house at the shortest possible time.