FOREX

[selenac]

Qualifying for second loan modification – Factors to consider

If you’re one of those who’ve got 2 monthly mortgage payments to make and struggling with it, then you must be wondering whether or not it’s possible to qualify for a home loan modification on your investment property. It’s not always easy, given the present market conditions, to pay off the loan on your primary residence as well as your investment property. Just like there’s home loan modification help available, similarly you can get help for loan modification on your investment property as well.

How to decide whether or not investment property will qualify for loan modification

Before you decide whether or not you need help for modifying the loan on your investment property, it’s rather important that you understand whether or not your investment property qualifies for a loan modification in the first place. Here are 3 considerations that’ll help you decide so –

1. HAMP only for primary homes: According to the Home Affordable Modification Program (HAMP), it’s possible to rework on your mortgage loans if you happen to be a struggling homeowner. However, one of the most important qualifications for loan modification is that it can be done on your primary residence. This basically goes on to mean that your investment property wouldn’t really be eligible for a government assisted loan modification.

2. Discussing with your lender: In spite of the specifications of the Home Affordable Modification Program, there’s still scope for you to qualify for a loan modification as far as your investment property is concerned. However, to achieve this end you need to work directly with your mortgage lender. Most importantly, you can’t expect any government-aided financial incentives. Rather, contact your mortgage lender as soon as possible so that you don’t get behind on your monthly payments. This should make the modification process a tad easier.

3. Things to provide: Firstly, you’ve got to prove to your mortgage lender that you’ve gone through genuine financial crisis. That’s the reason why the monthly payment that was affordable to you once upon a time, is no longer feasible for you. Get it across to your lender that this monthly payment is considerable financial burden for you, so it’s essential that you modify your investment property loan. Write out a financial hardship letter to this end. Secondly, you’ve got to provide the necessary documentations to your lender that can show that you’ve actually fallen behind on your debt obligations. Copies of recent credit card bills, various other loan statements, checking account statements as well as bank savings and recent income tax return documents should be included among other documents. It’s this financial information that’ll help your lender come to a decision about whether or not you can actually afford the payments on your investment property.

If you keep in mind the 3 considerations discussed above, then it shouldn’t be a problem for you to qualify for a loan modification on your investment property. Remember, it never helps to take a certain financial step unless you’ve thought out all the considerations properly.