Are You a Loan Modification Candidate?

Are you wondering if you might be a candidate for loan modification? Many homeowners - and by many, we mean thousands if not millions - are finding that a loan modification is the right solution for a failing mortgage. How do you know if you should pursue a loan modification?

• Been trying to refinance but can't. Just about everyone that has an adjustable rate mortgage has attempted to refinance. The problem is that most are getting turned down. Ever since the housing market went into steep decline and lenders began collapsing, it has become seemingly impossible to get approved for a new loan using traditional means. However, many of those same homeowners have been able to get their loan modified in a workout agreement with their lender.
  
• Got laid off from work or suffered some other hardship. Life happens and there's nothing you can do about it sometimes. Perhaps you got laid off from work. Maybe there was an illness in the family that required monetary support and kept you from working. Car accidents. Injuries. Unexpected events. Market affected your income. They're all legitimate reasons that can get you behind on a mortgage that you can otherwise afford. Hardships such as these are often accepted by lenders as justification for loan modification.
  
• Home value has dropped. The market is in decline and home values are falling. In many cases, loan modification may not be an option when you get upside down on your home loan. A lot of people in this situation are better off with a short sale. Still, it is absolutely worth your time to at least explore the option with a loss mitigation specialist. At the very least, they can help you get approved for a short sale.
  
• Simply can't keep up with the mortgage. In a tough market, many people have seen their income drop substantially through no fault of their own and can't afford the home they once easily made payments on. You may be able to get a loan modification that makes that home more affordable. If not, again, a short sale is an option as well.