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The loan modification process can be frustrating and confusing for many distressed homeowners. If you are considering contacting your lender about a loan workout to avoid foreclosure, you need to get as much information upfront as possible so you will be prepared and able to present your case in the best possible light. Programs and guidelines are changing and it is getting much easier for homeowners to get the help they need. To help you understand how the process works and what you can expect, here are the Top 10 Questions and Answers:

1. What exactly is a loan modification? A loan modification is a permanent change in one or more terms of a borrower’s home loan, allows the loan to be reinstated, and results in a payment the homeowner can afford

2. Can the lender include late charges in the Loan Modification? The federal plan mandates that the bank waive any administrative charges, late fees and penalties when offering a loan workout.

3. How will the new government programs help me get a loan modification? The Federal government has allocated $75 billion dollars to subsidize lenders and servicers who offer a loan workout to their clients. Now, the banks will have a monetary incentive to offer help to qualified borrowers. In addition, homeowners who pay their new modified payments on time will be eligible up to $5000 credit to their loan balance.

4. How do I know if I will qualify for a loan modification? The number 1 criteria your lender is looking at is your ability to make the new modified payment now and in the future. You need to supply the lender with proof of your income, along with a complete and accurate financial statement detailing your income and expenses to show them that if granted the modification, you will be able to afford the new, lower payment. You must also be able to demonstrate that you are facing a financial hardship-lower income or higher expenses for example.

5. Do I have to be currently delinquent on my payments to get a loan modification? President Obama has included a special incentive under the Home Affordable Modification Plan that will pay lenders an extra bonus for reaching out to homeowners not yet delinquent but at risk in the future. The goal is to help borrowers before they fall into default.

6. What is an acceptable Hardship situation? Each homeowner has a unique set of circumstances that caused them to fall behind on their home loan, but generally the lenders consider divorce/separation, loss of income, death of spouse, co borrower or family member, illness, job relocation, military service to be acceptable reasons to consider a loan modification. A compelling hardship letter included in your application is a very important part of a successful application.

7. Will a loan modification help me stop foreclosure? Yes, that is the goal-by working with your lender to find a loan workout solution, your loan is brought current and the foreclosure process is halted.

8. Can my missed payments be added back into my new loan modification? Yes, the arrears can be added to the new loan balance and spread out over the term to allow the loan to be brought current.

9. Can I do a loan modification myself or should I pay someone to represent me? That is entirely up to you and your comfort level with dealing with your lender. The Treasury Department is strongly discouraging the payment of any fee to a third party to represent you in a loan workout. Regardless of what you decide, the first thing you should do is learn all you can about the process, your legal rights, and what it takes to get your application approved. An informed homeowner is harder to take advantage of and will have a much greater chance of success.

10. So how do I get started to modify my loan? Before contacting your bank’s loss mitigation department or a loan mod company, do your homework-learn as much as you can about the loan modification process so you can make informed decisions.

President Obama’s Home Affordable Modification Plan offers real hope for millions of homeowners who need a solution to stay in their home. Not everyone will qualify however, and interested borrowers will have to complete loan modification application forms, provide proof of their income and meet certain eligibility requirements. Most lenders are participating in this new government subsidized plan, and homeowners are encouraged to learn how they can qualify and apply for a loan workout and avoid foreclosure.

The loan modification process can be frustrating and confusing for many troubled homeowners. If you are thinking of contacting your lender about a loan should get as much information as possible, so that you will be ready in advance and in your case in the best light possible to you to avoid foreclosure. Program and policy changes and it’s always easier for homeowners to get the assistance they need. To help you understand how the process works and what you can expect Top 10 questions and answers are listed below:

1. What is loan modification? Is a permanent change in one or more conditions of the mortgage borrower that can afford the loan summary and results in paying homeowner loan Modification

(2) may include the lender recently fees on loan modification? The Federal plan provides that management fees, bank charges and punishment to end if the credit offered.

3. How can I find the new Government program loan modification? Federal Government allocates 75 billion dollars to subsidize lenders and credit providers, to offer their customers. Banks now have monetary incentives to offer qualified assistance to borrowers. In addition to their landlords, the new modification time on the number of loan payments up to $ 5000 for their balance.

4. How do I know if I get credit for changes? Criteria number 1, which deals with your lender is the ability to payment again now and in the future. You must make sure that if the changes you’re paying new, Lower lender with proof of your income, together with complete and accurate financial reporting to show details of your income and expenses, li. It is necessary to demonstrate that you have a hardness lower financial income or expenses, as the person above.

5. do I have to get a loan modification at present offenders on my payments? President Obama has special incentives among available changes home plan, creditors reach homeowners do not contain even the offenders but will pay extra bonus at risk in the future. The aim is to help borrowers before getting into by default.

6. That situation is acceptable? Every homeowner has a unique set of circumstances to drop their housing loans for the cause of divorce/separation, loss of revenue, the death of a spouse, co, but in General, they are lenders or member of sem′ibolezn′, translation work, military service, acceptable reasons to consider a loan modification. Convincing letter rigidity in the application of a very important part of successful application are enabled.

7 loan modification foreclosure helps stop? Yes, this is the purpose of working with your lender to find a solution for credit, credit redemption process stop is brought current.

8. can be added to my back no payments in my new loan modification? Yes, balances can be added to the new loan balance of credits and would present.

9. I can’t even modify loan or you need to pay someone who me? This is entirely up to you and your level of comfort with is your lender. The Treasury Department for payment to a third party firm representing you in training loan counter. No matter what you choose, this is the first that it is possible to know the process for obtaining permission to use and that it accepts application is approved. Proprietor informed is more complicated to use and have a greater chance of success.

10. the programme I change my loan? Firstly, the loss mitigation Department of your bank or credit company mod, do your homework and find out how you can change the loan process, you can make informed decisions.

President Obama’s home affordable modification plan offers real hope for millions of homes and apartment owners must be a solution to their homes. However, not all will qualify and complete the application form, borrowers interested editing and proof of income must meet certain conditions. Most lenders in this new plan Government-subsidized, and owners of houses and flats are invited to learn how to qualify and apply for a loan workout and foreclosure avoidance.

Chase Bank recently announced that from Jan -July 2010, it has assisted approximately 900,000 homeowners interested in modifying their home loan. What’s interesting about this announcement is that Chase is actually doing something to address the three major complaints that have plagued both HAMP (the Federal “Home Affordable Mortgage Program) as well as the entire banking and loan modification industry. Here are the three major pitfalls and what Chase is doing about them.

Problem One. The loan modification process confuses most homeowners.. The majority of homeowners throughout the United States originally purchased their home through a realtor or mortgage broker who held their hand throughout the buying process and guided them. To help bring a homeowner up to speed to do a loan modification, Chase now assigns a counselor to each customer that is working with Chase; this counselor walks the customer through the modification process and is their primary contact with Chase from start to finish.

Problem Two. Banks commonly lose documentation and ask homeowners to resend documents. Most homeowners who have encountered financial difficulty find it difficult to send the necessary documentation to a lender and hold a job at the same time. What makes things worse, some homeowners learn that after sneaking off at lunch to fax the financials from a Kinko’s, that the documents previously sent were either lost, incorrect or never received by the financial institution. The other day, for example, a person at a bank notified me that an application had been rejected because it was missing a zipcode on the address. She told me that resubmitting the correct document should be an easy task, not knowing how precarious the current job market is and how difficult some companies make it for their employees to do personal tasks while on the job. To make things easier for homeowners, Chase has established a centralized location for document collection and imaging, making it easier to review a customer’s file and reducing the need for borrowers to resend documents.

Problem Three. Loan modifications take too long. Most homeowners have been promised that their modification will be approved after making three monthly trial payments only to learn that after making seven or eight trial payments they are no closer to gaining approval than when they first started. To help speed things up, Chase has hired 8,000 new credit counselors to help complete the loan modification evaluation within 30 days of receiving borrower’s completed application package.

By expanding their team to assist customers, Chase can now weed through their applicants more effectively. They can communicate better and help those fortunate enough to qualify and discover the homeowners who are not eligible for a modification but who might want to pursue a short sale or other foreclosure prevention option. Still the statistics for loan modification approval from Chase are not encouraging. From Jan – July of 2010, only 27% of the modification applicants offered for the Chase HAMP program had gained approval, and 38% of applicants through Chase Bank’s own loan modification program had been approved. But at least it’s a start in the right direction!