What is a Home Loan Modification?

The main purpose of home loan modification is to make your mortgage payment more affordable and it is jus like a mortgage refinance. It is often called as modified refinance also. The basic difference is that here you do not need to take nay new mortgage loan. You just need to modify the terms of your existing mortgage loan.

Why a Loan Modification Versus Refinancing My Mortgage?

To obtain a more affordable mortgage payment refinancing can still be a good option. But for most of the homeowners it is not their best option. And the reason is that a homeowner who has faced a financial hardship that prevents him to go for other mortgage financing.

In the most of the cases a home loan modification is recommended to those homeowners who have faced financial hardship that prevents then to make their monthly mortgage payment. If you have missed one or two monthly mortgage payments then only you will be eligible for the loan modification program.

Am I Eligible for a Loan Modification?

This will be different depending on to whom you are giving the monthly mortgage payment. Most of the time more or less same criteria are followed. There are some common loan modification qualification standards those are listed below:

• Experienced a documented hardship or change in financial circumstances
• Missed three payment (90 days delinquent) or more
• Owns and occupies the property as a primary residence
• Not filed bankruptcy

There are some other important factors which may affect your eligibility:

• Do not intentionally default to get a loan modification
• You have to make sure that you are responsive in working with your lender

You should contact your lender and should tell them about your hardship as many of the programs do vary in how they work.