King County Home Solutions

Loan Modifications represent an opportunity for qualified borrowers to make adjustments to the terms of their mortgage in order to cure or avoid defaulting on their mortgage. Lenders, under pressure from the treasury department, are being encouraged to modify more loans in order to mitigate the the effects of the recession and help more taxpayers keep their homes.

More and more people have been taking advantage of these programs. The programs help them rebuild their lives, pick up the pieces, and helps them recover from today’s financial crisis. Loan modification programs may not solve all American financial problems, but at least it saves American homes.

Is a loan modification right for you? for borrowers who are facing a short term financial hardship and who have some equity in theri homes a loan modification can mean the difference between keeping their home or losing it in a foreclosure action. While you must still qualify the standards are much more liberal than those required for getting a new loan. If your financial hardship is long term and/or your loan balance exceeds the value of your home you will likely com out ahead by short selling your property and taking advantage of limited time tax incentives and liability relief instead. To calculate how you will fair put your own information into the Loan Modification VS Short Sale Calculator to estimate your results.

Loan Modification VS Short Sale Calculator

• They are not suited to you if your mortgage balance is greater than the current value of your home.
• Qualification requires you to have sufficient income, loan to value ratio, and a lender that is willing to cooperate.
• Lenders will often offer a modification that is good for them and bad for you. It is imperative that you know what your target monthly mortgage payment is. Otherwise you may accept a bad modification and increase your chances of redefaulting.

Start here to get the tools you need to have the maximum chance of getting your loan modified

• How To Talk To Your Lender report, with tips and advice from top negotiators on how to deal with your lender, what they want, and what not to do.
• Loan Modification Application. All lenders will require a hardship letter, financial statement and supporting documents. You can get one from the lender, after waiting on hold, or download this one and start ahead of the game.
• Homeowner Loan Modification Kit. Stay on tract and have the information you need at hand with this free kit. Includes a list of Free HUD Approved Counselors.
• Using a loan modification company?…beware! Click here for tips on avoiding loan modification company scams, check your company’s License Registration with the DFI,  and download the Department of Financial Institutions Fee Agreement for use with loan modification services.

With these tools you should be well prepared to when contacting your lender for a loan modification. In most cases there are going to be soome challenges. If you have questions use the “ask now” link to send us an email and we will reply promptly.