What Factors Are Motivating You To Consider A Loan Modification? Strengthen Your Case

The Home Affordable Loan Modification (HAMP) program, part of the Home Affordability and Stability Plan strategy of the US Treasury, has been steadily increasing in number during the last few months. Rising numbers of American homeowners are expressing reasons why a loan modification represents the most sensible plan of action for them in the midst of these difficult economic times.

According to the latest HAMP report, the total number of active loan modifications that existed as of March 2011 was just over 580,000. In more than half of these cases, the sudden loss of income as a result of an unexpected job loss was cited as the reason for action of this kind becoming necessary. You may very well be one of the multitudes of Americans who can identify far too closely with a development of this nature.

There are of course also those instances where homeowners have simply extended themselves beyond realistic budgets, and committed themselves to a cost of living that has eventually caught up with them. What many people are failing to do is to provide solid evidence of the fact that they are unable to cope with their mortgage payments. The federal HAMP program (as is the case with numerous others) requires comprehensive documentation that demonstrates that the homeowner in question is unable to keep his or her head above water due to circumstances that are beyond their control.

Numerous families in America have been crushed by the financial burden brought about by exorbitant medical expenses. A lack of adequate insurance cover for whatever reason, combined with the unexpected development of serious and/or chronic health conditions, has brought many American families to their knees, so much so that holding on to their homes simply becomes impossible. Other families have been snowed under by legal fees associated with lengthy court proceedings, or any one of a number of other circumstances that have resulted in a severe financial setback.

Demonstrating convincingly in a hardship letter that circumstances have made it impossible to honor existing mortgage payments is one of the key factors in receiving a favorable outcome to a loan modification application. It has already become clear that countless homeowners have been buried in red tape during the course of a loan modification application, and a great number of banks are not going out of their way to make the process simple for those in need. Taking steps to ensure that your application is supported by the relevant supporting documentation is therefore incredibly important.

It is a sad reality that in many, if not most cases, the most reliable assistance you can receive during the course of a loan modification application process, is the assistance that you provide yourself with. Structuring a loan modification package that is as strong as possible simply makes sense, especially when the stakes are as high as they most often are in these situations. You would also do well to know in advance as best you can what kind of chance your application has of being approved. This will remove a great deal of guess work and uncertainty from the application process.