The most important factor is to prove that you have the ability to satisfy your new mortgage payments based on a loan modification. Banks are careful in analyzing debt-to-income ratio in order to determine modified rates and terms. In many cases, a complex preliminary analysis allows the lender to identify the steps and measures that are required to achieve a loan modification.

The main factors that are considered for a possible loan modification are the following:

• Sudden “change” in Loan Payments
• Sudden “change” in Household Income
• Sudden “change” in Monthly Expenses
• Sudden “change” in Debt
• Negative amortizing loans
• Your monthly mortgage must be affected by a verifiable reduction in income.
• It is required that you are currently employed or have another source of a stable and predictable monthly income that is provable.
• The rate is adjusting or adjusted and the payment is too much.

Medical payments, loss of work, reduced work hours, or any other hardship that diverts income are the most common factors considered for loan modification. Loan Fraud (undisclosed terms) or reckless and Predatory Lending Practices discovered during our legal analysis process are usually the biggest contributing factors to favorable decision. Although there are no unified guidelines for eligibility, our negotiators know the criteria that each bank requires for a loan modification.