Mortgage Modification Guidelines - Standard Guidelines Everyone Should Know Before Applying
Most banks and financial institutions will have their own requirements or mortgage modifications guidelines. However, there are a few main government regulated requirements that will be universal to all of them.
Primary Property:
The mortgage that you are applying to modify must be that of your primary residence. This basically means that it needs to be the home you live in. As this is part of a debt rehabilitation program, it would not do to grant mortgage modifications to second or holiday homes.
Know your financial status:
Before applying it is important to get a good idea of your current financial status. This will be required to calculate the new terms of your loan. Do not attempt to make it look better or worse than it actually is because the formula that they use is put in place to help you.
Choose an Accredited Institution:
Whether you go to a bank or similar financial institution or an attorney, it is important to make sure that they are accredited. This means that their procedures will be government approved. If you do not do this you stand the risk of paying insane amounts of interest or simply getting duped.
Research:
Make sure you approach several banks and get quotes. Always remember that you are the customer and that this is your loan. You are not asking for charity and the banks that grant this modification will most certainly score from your custom. Dont allow people to bully you into going with them by falling for gimmicky add-ons. It is a good idea to get as much information in advance, sit down with a cup of coffee and make an informed decision. Often, when we are desperate, we grab at the first lifeline that seems available. This may end up causing you more harm than good. On percentage point in interest can add years on to your payment plan.
Get the Contract Looked at:
Even large impressive banks will try to slip in a few loopholes if they can manage it. They may add all sorts of hidden costs for administration, stamping duties etc. This is why, even if you have to shell out the cash and pay an attorney for a short consultation, it must be done. Make sure you have a professional who understands legal speak to review your contract and explain all the clauses and provisos.
Be confident and prepared, research several mortgage modification guidelines. Its your home, and your life. Claim it.
Primary Property:
The mortgage that you are applying to modify must be that of your primary residence. This basically means that it needs to be the home you live in. As this is part of a debt rehabilitation program, it would not do to grant mortgage modifications to second or holiday homes.
Know your financial status:
Before applying it is important to get a good idea of your current financial status. This will be required to calculate the new terms of your loan. Do not attempt to make it look better or worse than it actually is because the formula that they use is put in place to help you.
Choose an Accredited Institution:
Whether you go to a bank or similar financial institution or an attorney, it is important to make sure that they are accredited. This means that their procedures will be government approved. If you do not do this you stand the risk of paying insane amounts of interest or simply getting duped.
Research:
Make sure you approach several banks and get quotes. Always remember that you are the customer and that this is your loan. You are not asking for charity and the banks that grant this modification will most certainly score from your custom. Dont allow people to bully you into going with them by falling for gimmicky add-ons. It is a good idea to get as much information in advance, sit down with a cup of coffee and make an informed decision. Often, when we are desperate, we grab at the first lifeline that seems available. This may end up causing you more harm than good. On percentage point in interest can add years on to your payment plan.
Get the Contract Looked at:
Even large impressive banks will try to slip in a few loopholes if they can manage it. They may add all sorts of hidden costs for administration, stamping duties etc. This is why, even if you have to shell out the cash and pay an attorney for a short consultation, it must be done. Make sure you have a professional who understands legal speak to review your contract and explain all the clauses and provisos.
Be confident and prepared, research several mortgage modification guidelines. Its your home, and your life. Claim it.