When it comes to myths about loan modification there are no shortage of tales to be told. You’ll here this, you’ll hear that, what can be done, and what cannot be done. In this short article I’ll dispel three of the most common myths and give you the confidence to move forward with seeking a modifying loan.
Myth #1 – Loan Modification is for Anyone
This is one of the biggest myths out there and nothing could be further from the truth. Although loan modification is a viable option for a lot of people, it won’t necessarily suit you unless you are having very serious trouble paying your monthly mortgage. In fact, before you can be considered for a modifying loan, you’ll have first demonstrate that you really need the loan — and more importantly, that you can keep up with the payments after your loan has been modified.
Myth #2 – Qualification is Guaranteed
This is another prevalent myth floating about. The fact is that although being in financial difficulty is a big requirement, you also have to satisfy other criteria. For one, you will need to show that under any new arrangements you’ll be able to keep up with the payments. You will also need to show that your income/debt ratio is satisfies the 31% threshold. Under this income to debt guideline, your monthly mortgage payments must exceed 31% of your monthly income. When it comes to myths about loan modification. this one is big, so study the facts before you try to get a loan.
Myth #3 – It’s Safe to Make Self-Applications
How often do people come a cropper because they follow this myth. An application for a loan mod should be taken with absolute care and meticulous detail. Loan companies get thousands upon thousands of these applications each week and so the whilst the process is overseen federally, there is still a filtering system in place. Get it wrong on the application and you are almost guaranteed to be turned down. The solution to this ghastly myth is to seek professional help. There are hundreds of loan modification companies online who are willing to help you submit the best application possible.
You are now one of the few people who won’t fall prey to myths about loan modification and ripe urban legend. Use the information you’ve just digested wisely and I am sure you’ll have loan modification success.