Basic Tips on Obtaining Loan Modification

Posted on 09/03/2010

If you have a good credit record, getting a loan modification would be easier. Of course, with a high credit score you are a less risky borrower. More lenders would readily lend you money. When the market becomes profitable to modify your loan, you can immediately take advantage of the opportunity.   Of course, you could also want to successfully obtain a loan modification to make monthly payments more affordable. With the current economic crisis faced by many families today, many are really having a difficulty keeping up with their payments. Whether you think you have a good credit standing or a bad credit record, it's essential that get your credit record before you apply for a loan modification. You must ensure that everything that is written there is accurate.   Now if you have a bad credit record, let's say, you have missed a payment or two in your current loan. You have to prove to your lenders that the reason why you missed them is due to an honest financial difficulty. It's not because of a reason that you made a recent big purchase but because you lost a job, for instance. You would have to present a detailed list of your expenses and your income to give them a clear picture. Point out how religiously you've been paying your amortization before you lost your job too.   The good news is many lenders now offer loan modification. So, you have better chances of obtaining one. But if still unsuccessful, you can always consult a government agency about your situation.