Home Loan Modification Requirements
If you are unable to pay for your home loan because of financial hardships, you need to know these home loan modification requirements in order to apply for various programs that could give you more affordable payment terms for your home mortgage. A home loan modification allows you to make changes on the payment terms of your existing loan to cope with your financial capacity to pay for your mortgage. The following are some of the basic home loan modification requirements as required by some lending institutions although they also vary from each other.
- Letter explaining your circumstances. This document is required to give detailed explanation that would justify your request for a home loan modification. You will need to give reasons about your financial hardship or personal circumstances that affect your capacity to pay the currently existing payment terms of your loan.
- Proof of current income. This is a necessary requirement for the lending institution to accurately evaluate your capacity to pay for your home loan. The statement of your current income will be a major basis for the adjustment on the payment term modification to be applied for your home loan modification application.
- Detailed monthly expenses report. You will be required to provide some information about your income and expenses to evaluate your capacity to pay for the home loan modification. This will help the lending institution decide whether you will have sufficient funds left to pay the monthly obligation for your mortgage.
- Home loan modification application form. Most lending institutions usually have an application form ready for you to fill-up the important information that they need relative to your home loan modification request. Most of the time these application forms require you to provide some financial information that could help evaluate whether you meet their home loan modification guidelines.
- Eligibility. To qualify for a home loan modification, you need to meet certain criteria. An applicant should be suffering from financial hardship or experiencing changes in their financial circumstances to be eligible. You must be delinquent for at least three payments or more and occupies the mortgaged property as primary residence. Moreover, applicants should have no history of bankruptcy.