Three factors must usually be present for a mortgage modification to be viable:

 

1. There has been a good reason or hardship that has resulted in the inability of the homeowner to make the current mortgage payment or the increased payment that will result from an adjustment in the interest rate.
2. There is not enough equity remaining to sell the home and payoff the mortgage without the lender agreeing to take less than is owed.
3. The most important factor is the homeowner must be able to provide documentation showing that they can afford to make the proposed modified payment. All income can be considered as long as it can be documented.

 

According to the Department of the Treasury, “Anyone with high combined mortgage debt compared to income or who is “underwater” (with a combined mortgage balance higher than the current market value of his house) may be eligible for a mortgage modification. This initiative will also include borrowers who show other indications of being at risk of default. Eligibility for the program will sunset at the end of three years.”
Who’s not eligible for a mortgage modification? Speculators — or those who bought homes for investment purposes. All homes must be owner/occupied. Also, mortgages with amounts above the conforming loan limits would not be eligible.

Have you fallen victim to unscrupulous mortgage lenders? Contact a Florida Mortgage Loan Modification attorney today for a free, no obligation consultation.