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Loan Modification – Is It For You?

Posted Wednesday, August 13, 2014 by Ada K. Wong

alt text Unfortunately, the number of foreclosures in the state of Washington is still prominent. Millions of homeowners are bearing the effects of the foreclosure crisis. In 2013, almost 1.4 million homes across the United States were in some stage of foreclosure – that’s 1 in every 96 homes – more common than you may think.
If you or someone you know is having difficulty making mortgage payments or behind on payments, this may lead down the road to foreclosure. But there is still a fighting chance. Under some circumstances, it is possible to receive a loan modification from your lender and avoid a foreclosure on your home.

To start the loan modification request process, you must gather pertinent documents, negotiate with your lender, and see if you can come to an agreement that will allow you to make payments that you can reasonably afford. For instance, the Home Affordable Modification Program is a federal government program that you may qualify for. This is one of the federal government’s Making Home Affordable programs and is designed to modify your loan to give you a sustainable monthly mortgage payment and make things more affordable. To qualify for this program, if you live in a single-family home, the amount you owe on your first mortgage must be equal to or less than $729,750; for a 2-unit property, $934,200; for a 3-unit property, $1,129,250; for a 4-unit property, $1,403,400. Your current mortgage must also be taken out before January 1, 2009.

However, even if you do not qualify for the Home Affordable Modification Program, there are other loan modification programs that you may qualify for. Generally, you must be able to demonstrate that you are suffering from a financial hardship, such as reduced income, lost of employment, or medical expenses.

Feel free to contact Ada K. Wong at (206) 805-1493 or AWong@PivotalLawGroup.com if you are interested to see if loan modification in lieu of foreclosure is an option for you.

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