Home Loans Articles

Do I Qualify For A Home Loan Modification?

Given that we have just surfaced from the worst recessions in recent history, homeowners are hurting. Many are now finding that their properties are worth less than the outstanding loan on them, and this is often forcing people to completely liquidate their assets in lieu of their home loan.

Thankfully, however – the government in America has realized that home owners need a solution to help them out in these tough economic times. They have come to the party with something called a “home loan modification” option. Essentially, this option allows the home owner to receive help from the government, if they fit in to a certain set of parameters.

So do you qualify for a home loan modification? Take a look at the criteria below to find out.

The Criteria for Home Loan Modification

Home loan modifications are a facility provided by the government to home owners who are fundamentally in trouble. They are extended to people in unique sets of circumstances – however they are based on the following individual criteria:
  • The home with the home loan is your primary residence, and you occupy it
  • There is a real and actual risk that you will fall in to foreclosure if you don’t receive help
  • The loan on your property totals no more than $729,750 in principal (accrued and unpaid interest is excluded from this amount)
  • You do have a verifiable source of income which can help to pay off the repayments each and every month
Assuming you have all of these things – a home loan modification could indeed be one of the things you can consider to assist with your debt repayments.

Other Criteria for Home Loans Modification

When submitting your application for home loan modification, you will need to provide a fair amount of documentation to support your request. This documentation will include things such as your tax returns, your income proof, and obviously your identification.

Ensure that you have all of this ready and in good order before submitting your application for a home loan modification. You don’t want to find out that you get held up down the track simply because you do not have this paperwork available.