by Sylviane Nuccio

Created on: November 26, 2008

We are hearing about loan modification these days more than ever. It's almost like the term didn't exist before and now it's all over the place.

The truth is, loan modification has been around a long time and with it one of the best ways to straighten up financial hardships.

Single women and single mothers need to know about loan modification more than anyone else as they are going through tougher times financially.

Why would it be harder to make your mortgage payments as single women?

1) Single women are making in general less money than men or couples do.

2) Single women are very much affected by the heavy income tax single people are paying.

3) Single women may be single mothers who are not receiving any type of alimony.

Why Refinancing is a term that is well known as we rarely hear about loan modification?

This is because banks and lenders are usually not volunteering to talk about loan modification to their borrowers. Why are we hearing now more than ever about loan modification? The reason is mortgage meltdown and FORECLOSURE which are costing money to the lenders. Therefore lenders would be more willing to accept a loan modification.

What is a loan modification?

A loan modification is an agreement between the borrower and the lender to modify your loan. Loan modification is a right that the borrower has to present a request to modify his loan in order to be able to save money on his monthly mortgage payments and interests. The goal of a loan modification is to keep the borrower in the home and avoid foreclosure. Recently legislation has asked lenders to make every effort possible to offer homeowners a viable solution through modification of their loan.

What do you need in order to present a loan modification application to your lender?

Your loan modification request must include:

1)
A hardship letter which will explain your financial circumstances and hardship.

2)
A financial sheet with financial statements

3)
All bank statements for the past 2 years

4)
Pay stubs for the last two pay periods.

How can a homeowner be sure that they are receiving the full benefit of a loan modification?

Homeowner need to learn everything they can about the loan modification process. In order to save money they need to know that they don't have to go through a lawyer or a loan modification agency to file application. Legal services will charge anywhere from $1,500 to $3,000 to file for you. You can do it yourself. There are complete guides that you can purchase for a very low price and that will help you to file your own loan modification.

It is in the interest of single women to file their own loan modification as they are struggling to pay their mortgage on their own. Being a single woman or a single mother will be a very strong argument as you write your letter or hardship. You will have to explain how it makes it more difficult for a single woman to be able to pay your mortgage monthly payments. These reasons are often taken for granted and you should emphasis them in your letter.

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