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After the recent mortgaging industry debacle, many homeowners are looking for a way to rework their loan with a quick financing fix. One of the ways to accomplish this is with a loan modification which allows permanent alterations to one or more terms of a present loan. When a borrower is in mortgage trouble what they need most at the time is a quick financing solution or they are in real danger of losing their home. Loan modification is a quick financing program proving attractive to many with mortgage payments that they can no longer afford. Traditional lenders are not in the real estate business and are reluctant to foreclose if an arrangement can be reached to keep the borrower in the home. Modification to an existing mortgage often enables the borrower to decrease the payment amount, prevent the loan balance from increasing, stops any alterations to loan terms that could create future delinquencies and allows change from one type of loan to another;. With government loan modification terms more stringent that before, borrowers should be aware the length of time it takes to process loan paperwork nowadays is 2-3 months; the days of super quick financing are over. The process for loan modification is not unlike the application for a regular mortgage, with the exception of government loan modification terms that apply. Expect to pay a “contribution” which is no more than a processing fee requirement by your lender to process the modification. Not every lender allows loan modifications. In an effort to stabilize the mortgaging situation, government loan modification terms define who may benefit and by what means their loan may be modified. Government loan modification terms describe those who may qualify for loan modification as borrowers that owe more than the value of the home, those whose income has decreased significantly, those with very high interest rate mortgages and those with adjustable rate mortgages. If you have any of these loan types or have lost your source of income, it is likely you would qualify according to current government loan modification terms. Loan modification has nothing to do with credit; it has only to do with finding quick financing solutions that will help the borrower out and allow them to keep the home. Borrowers with negative home equity may find loan modification a good way to reduce the loan amount to the actual current market of the home. In the case of borrowers who have lost some or all of their income sources, the borrower must prove to the lender that they will be able to make payments on the modified loan. Government loan modification terms allow the lender to consider all sources of income from the loan signers, others living in household and from co-signers. The lender will completely investigate to ascertain that the borrower can afford to pay the modified loan. The loan may be modified to a lower interest rate, longer term, reduced principal or any other way that will keep the borrower in the home. Author Bio. Let the professionals at Quick-Financing help you navigate Government Loan Modification Terms for a Quick Financing solution to your mortgage problems.
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