Haines & Krieger Attorneys at Law

There's a lot of talk about "loan modification" these days.  But how do you know if you qualify?

Well, first it's important to understand that the term has different meanings depending on the context.  In one sense, it refers generally to the process of trying to change some of the terms of your mortgage, such as your interest rate, the term of the loan or even the principal.

But when people talk about "qualifying" for loan modification, they're usually referring to the federal government's loan modification program which is called the Making Home Affordable program which was announced in March 2009 by the Obama Administration.  Under the terms of the program, the government provides financial incentives to banks to comply with the program and provide loan modifications for eligible homeowners.

So how do you know if you're eligible?  Here are the basic conditions:

1. You must live in the home for which you're requesting loan modification.
2. You must be behind in your mortgage payments.  Or if you're not behind, then you must prove that you're on the verge of financial hardship.  (For example, you just lost your job, or perhaps you're about to incur a large medical expense.)
3. There is an upper limit of $729,750 on the remaining balance of your first mortgage.  That is, if your balance is more than that, you are not eligible.
4. You must make the new payment for a 3-month period as a trial before you officially qualify.

Yes, we know.  It seems sort of silly to not help people who are struggling to keep their homes and have made every effort to not fall behind on their mortgage payments.

But if you do qualify, then the benefits can be very helpful.  In some cases your monthly payment can be halved along with a reduction in your interest rate.  Though it's important to bear in mind that the modification only lasts for 5 years before reverting to the original terms of the mortgage.  In other words, it's supposed to get you a little bit of breathing room.

To learn more about qualifying, you can always get in touch with any of us at Haines & Krieger to get answers to your questions as well as general Las Vegas bankruptcy help.  We'll do everything we can to help stop foreclosure Las Vegas.  Just give us a call, use our online form or visit our office for all the foreclosure and Las Vegas bankruptcy information that can help you move forward.