Firstly, what is a mortgage modification program? It is simply the modification of your loan structure to lower your payments. Banks have now introduced mortgage loan modifications as a way to minimize their foreclosure ratios.
Let's get introduced to the Mortgage modification Program
This program is basically for those who are having trouble paying their monthly mortgage installments and now want to lower their payments. In order to be eligible for a Mortgage Modification you need to:
o Be owner of the mortgaged property
o Have a first mortgage originated on or before January 1, 2009
o Have a monthly payment of more than 31% of your Gross Monthly Income
o Have a mortgage payment that is unaffordable due to financial problems
If you meet all the required criteria, then you can apply for a loan modification.
Pros of modifying your mortgage loan
o Monthly mortgage payments are lowered
o After the loan is modified, and you make timely payments, then you get a "Success Incentive" that reduces the principal balance of your loan
o Modifications under the Home Modification program are free
o This program is basically designed for people who lack their timely payments or are on the verge of foreclosure.
Thus you can see how useful the mortgage modification program can be for those who are having hard time meeting their monthly payments. Lastly, beware of persons or institutions who ask you to pay fees in exchange for your loan modification-NO Charges should be made for a loan modification. Also, never make any payments to persons other than your mortgage service provider or an authorized official.
So, go learn about the different modification options available to you, begin the journey to modifying your loan and save yourself some of that ever so needed money. Good luck!