You have asked the question, ‘Can I get a loan modification?’ A loan modification is asking the lender to negotiate new terms for your existing mortgage instead of going through the refinance process. You can lower your mortgage payment if you are struggling financially. The lender will have the final approval and you will have to meet the qualifications that are his guidelines for changing the terms of your loan. Most people approach the lender when they have encountered a financial hardship that makes it hard for them to make the mortgage payment. You will need to contact your lender. Ask your lender how you apply for different terms and you will need to compose a hardship letter and send documentation to the lender that supports your reason for making application for a reduction in payments.
The federal government created a program to help homeowners who experienced difficulties in making their mortgage payments as a result of the recent housing industry crisis. The program is called the Home Affordable Modification Program of (HAMP) and you can get a loan modification through this program if you meet the criteria. The program offers bonuses to the lenders who will allow the home owner to change the terms of their mortgage. HAMP is an intermediary, if you will, between you and the lender to facilitate the negotiations. You must determine if you are eligible and if you are then you must apply. In this program you can have private lending institutions and the program is not restricted to the Fannie Mae, Freddie Mac government backed loan programs.
What are the eligibility requirements for obtaining the HAMP? You must be asking to change the terms of the note on your primary residence, your rental property, or your summer home. You cannot exceed the maximum loan amount of $729,750 for your home. The monthly mortgage payments that you make must be at least 31% of your total monthly income before you can get a loan modification through this program. You will have to provide the lender with your financial documentation. You will need to show the amount of income that you receive each month and the amount that you pay in bills each month. From this information the lender will calculate your debt-to-income ratio. Each lender that participates in this federal program will look at you qualifications and if you are approved you can get a loan modification.