San Diego has more than a million inhabitants, and unfortunately, about 10 percent of them are underwater on their mortgages. As the nation continues to struggle its way toward economic recovery from the recent recession, the latest round of home modification loans promised to rescue hundreds of thousands of families who are on the verge of losing their homes are being taken advantage of. Recent studies have suggested that about half of all homeowners who still owe money on their home owe effectively more money than their house is actually worth. In San Diego, this is a glaring problem. Fortunately, modification of mortgage is a viable option for many of these homeowners.
Loan modifications are an attempt to resolve the mortgage crisis in a way that will keep people able to make payments on their home loans while keeping lenders from losing their investments. The federal government has issued a number of modification of mortgage programs for 2011. Here’s what you need to know about the latest round of home modification loan programs.
The most important thing to understand about the modification of mortgage is that they are almost all controlled by the Obama Administration’s Making Home Affordable Program, or HAMP. The Making Home Affordable Program was rolled out to help individuals and families who are having difficulty making ends meet, modify their current loan to a lower monthly payment that they can afford. In addition to the modification of mortgage, there are also resources available in the Making Home Affordable Program that are designed to help existing home owners work their way through a deed-in-lieu foreclosure, a short sale or a refinance. There are also forbearance programs in place to help homeowners who have defaulted catch up and become current. All of these home modification loans are permanent once the trial period has been successfully completed.
The first step in changing your mortgage loan to a home modification loan is to provide your lender with the paperwork that they need in order to place your home loan into a modification of mortgage loan. This includes a request for a home modification loan and a hardship letter, Tax Form 4506T-EZ and verification of income. It is best to hire to a loan processor such as RTS Processing to prepare your modification of mortgage request. Lenders are overwhelmed and if you do not perfectly fit into the parameters of a home modification loan of your lender, they will likely refuse you out of hand, even if you are qualified. RTS Processing is qualified to navigate the confusion which is inherent in the modification of mortgages and can prepare your file to fit the guidelines and save you a possible denial and lost time. After your lender has received all necessary information, they will review it to place it in the modification of mortgage program that it fits.
NOTE: By researching and comparing the best loan modification companies on the market, you will be able to find one that can fit your specific financial situation. Take care and research a company or agent before making payment. It is illegal in California for any payment to be collected before any work is completed.
Hannah Wolf runs RTS Processing, where you can apply for a quick modification of mortgage to stop foreclosure or lower your monthly mortgage payments to a manageable amount. Call today and start saving thousands tomorrow!
Looking to find the best deal on San Diego Loan Modifications, then visit http://sandiegoloanmodificationprograms.com to find the best advice on Home Loan Modification for you.