Tuesday, March 28, 2017
Am I Eligible to Modify My Mortgage If I Don’t Have A Job?
A mortgage loan modification is a good way to reduce your monthly payments, because most modifications include a reduction in the interest rate. And, when the interest rate is lower, the payments are also lower. Most of us are more capable of paying a lower mortgage payment each month than a higher payment, so a modification is a good option if you are struggling to make ends meet. But there is a process associated with asking for a mortgage loan modification, and certain requirements that first have to be met before your lender will agree to a modification. For example, you have to fill out an application and provide certain documents to your lender to start the process. You cannot simply make a phone call and ask for a reduction in your interest or for a lower payment.
Part of the application process will be to provide proof of your income, but if you are unemployed that does not necessarily mean you will not qualify for a modification. The purpose of providing your income information is as follows:
• To show the source of your funds, which in turn shows that you have money coming in to enable you to make the payments.
• To show that the amount of money you have coming in is not enough to cover the existing payment, and thus you need a modification to the mortgage so the payment is more manageable.
While most people do have regular and ongoing income from an employer, there are those that rely on other sources for their monthly living expenses. It might be that you get alimony, or are living off of a fixed retirement, social security, or disability payments. The key when providing proof of income is to provide information that shows the amount you have coming in each month is steady. Because, without a steady flow of money you will not be able to make even a modified payment. Some lenders may hesitate to process your application without income from a W2 source, but with our help we can negotiate a modification that meets your needs. If you are struggling to pay your house payment each month, but do have funds at your disposal to pay something, give us a call to learn more.
If you have more questions about how to qualify for a mortgage loan modification, contact us today at www.law-ri.com. We will help you get prepared for what comes after we file your case, and have multiple locations where we schedule appointments.