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These Home Loan Modification Myths Can Keep You From Keeping Your Home

Many homeowners need home loan modification assistance, but many do not know how to get it or think they are unqualified to receive assistance. There are myths surrounding just about every instance of financial help, but with the economy in the state it is currently, many people simply cannot afford to be misinformed about modifying home loans.

If you are considering requesting mortgage modification assistance from your lender and you're not sure if you qualify, these debunked myths may help push you forward towards requesting assistance from your lender.

MYTH: Home loan modification is the poor man's refinancing:

Refinancing and modifying your loan are two completely different things. Refinancing is renewing your loan under different terms, whereas loan modification is changing the terms of your mortgage for lower payments and interest rates. Refinancing helps those who have a depreciated value on their property and would like a mortgage that fits the new property value, while mortgage modification simply reflects off the initial value of your property. However, refinancing has much tougher requirements to meet and you must have good credit to qualify for refinancing. Home loan modification requires only decent credit and the requirements are set around the statistic majority of homeowners in the United States today.

MYTH: You cannot qualify for home loan modification if you have bad credit:

As stated above, modifying your loans is much more welcoming towards homeowners who do not have excellent credit. Some lenders will negotiate on a loan modification agreement with a homeowner if their credit is bad, however many lenders will not consider you if your credit is too far gone. Find a firm giving free consultation on loan modification and find out if your credit does not meet requirements. Also consider hiring a attorney, as they can help greatly in getting you qualified for this.

MYTH: You will not qualify unless you have been late on a mortgage payment:

While it's not impossible to qualify for home modification without being late in most cases, it is difficult. The truth is, some lenders are more pensive to give assistance to homeowners who have not been late on their payments. A late payment signifies in the eye of the lender that you are in hardship, whether you are or not. If a lender will not accept your modification application because you have not made any late payments, present to them your financial records (which you should have anyway), income documentation, and tax documentation. If that fails, hire an attorney. If you are in financial hardship and are qualified for assistance, you have the right to receive it.

MYTH: If you cannot hire an attorney, you absolutely cannot persuade your lender into giving you loan modification assistance:

This is not true to an extent. Hiring an attorney will make the process easier for you and will raise your chances for success in negotiations, but in some cases a attorney is just not needed. Some homeowners are a shoe-in for assistance. Seek a free loan modification consultation out and see how you fit within the qualifications, you may be pleasantly surprised.

For additional information about home loan modifications , visit the #1 loans modification resource on the net: http://HomeLoanModifications101.com

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