Who Qualifies For a Loan Modification?

: Chris Lee Law Firm

  Filed under: Mortgage Modification

loan modificationThough loan modification agreements are approved of on a case-by-case basis, banks typically understand hardship in one of the following ways:

Disability or illness

Lenders may approve of a loan modification because you or your spouse has fallen on sudden, irremediable disability or illness. In such a case, a bank will approve a loan modification because your family finds itself living on reduced income as a result of disability or illness.

It must be proved to the lender that you or your spouse is suddenly a reduced income-earner. The lender may require proof from your doctor or healthcare provider attesting to your situation.

Unemployment

Ballooning unemployment is one of the primary reasons homeowners are now in trouble and seeking a mortgage loan modification. Reduced income potential because of unemployment may qualify you for a loan modification. Consult with your bank, as many have different loan modification practices and policies where unemployment is concerned.

Family divorce or death

Divorce often brings about new financial hardship. Divorce is almost always costly because of associated legal fees. Any case where a family is split—especially in the case of death— typically reduces the finances of the individuals involved. Consult your attorney during divorce proceedings about your loan modification options.

Drastically reduced income

Most importantly, you need to show your bank that you are reduced income-earner, and it is impossible for you to pay on your original loan as agreed.


Are you a candidate for bankruptcy?
Would you like to find out if bankruptcy is the right option for you? Try our Free Online Bankruptcy Evaluation. 4 easy steps to see if bankruptcy could be the right option for you!
  • Step 1
  • Step 2
  • Step 3
  • Step 4
Please Select Each Box That Applies To You
Creditor Harassment
Loss of Income
Foreclosure
Disability or Illness
Current Expenses
Auto Loans
Credit Cards
Medical Bills
Payday Loans
Do you have any additional information you would like to share?
Contact Information