Q: Do I qualify?

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Do you possess the means and desire to pursue a loan modification?

A hardship may exist if you have current financial difficulties or if you anticipate financial difficulties in the near future. Simply being upside-down or owing more than what your house is worth, is not necessarily a hardship.

Every case is unique; however, the most common examples of cases that are accepted by the legal team are as follows: 

  • Borrower is currently delinquent
  • Borrower is current on their mortgage payment but delinquency is imminent
  • Borrower has a Notice of Default or is in Foreclosure (please allow at least twelve days prior to the sale date in order to process the file)
  • Borrower cannot qualify for traditional re-financing
  • Credit score (FICO) is too low to qualify for traditional re-financing
  • Homeowner's property values have retracted - little to no equity does not allow for re-financing
  • Debt ratio is too high for traditional financing
  • Mortgage has pre-pay penalty feature
  • Unique property types such as manufactured home, rural, etc.
  • Homeowner's property is "underwater" - owe more than the property is worth.
Borrower's current loan has a :
High Interest Rate loan
Adjustable Rate mortgage
4-Option Arm (also known as a Negative Amortization loan)
Interest Only loan
Loan with a Balloon Payment feature
80/20 loan where the Borrower purchased the loan with no money down
    except the closing costs

High Loan to value loans (85% to 97% of home value when financed)
Stated income borrowers (self-employed)
Jumbo or Portfolio loan
Second loan or Home Equity Line of Credit (HELOC)  
  • Job loss by one of the Homeowners or a significant reduction in income by either party
  • Increased living expenses
  • Medical bills
  • Increased property taxes
  • Child's college tuition
  • Divorce
  • Called to active Military duty
  • Credit card debt
  • Homeowner is in chapter 13 and the modification process is agreed to by the court trustee


To be eligible for a loan modification you must be able to show the ability to consistently make the new modified payments.  The following qualifies as income:

  • One of the homeowners is still employed
  • Spousal support
  • Child support
  • Investment annuities
  • Social security income
  • Rental income
  • Permanent disability income                                                                                                                           
What may hinder the ability to get a loan modification?

  • Some lenders may not modify if the Homeowner is current on their payments
  • A few lenders may not modify a loan if the Homeowner has already been granted or offered a loan modification within the last six months
  • A single income source that results in a job loss
  • Unemployment as the only source of income
  • Homeowner is in Chapter 7, therefore needs to wait until discharged
  • High cost of living where the mortgage(s) is a smaller percentage of the monthly living expenses - Homeowner needs to first reduce any other extraneous costs i.e. life style, expensive cars, excessive travel, etc.
  • Federal tax liens, i.e. IRS taxes, and other liens such as unpaid property taxes