Starting June 1, 2010, home owners applying for mortgage modifications will have to provide paperwork upfront to prove they qualify. They will need the following documentation:
1. Two pay stubs
2. An electronic form that allows a servicer to pull up a tax return online
3. A request for modification that includes a hardship affidavit.
The goal of this new process is to decrease time delays and increase the success rate of turning trial modifications into permanent modifications. Around 66,000 homeowners have accepted offers to change from trials to permanent modification programs.
This new program applies to borrowers who live in their homes and whose housing debt expenses are more than 31% of their income. Simplfying the process should make things easier overall.
Under modifications, intrest rates are reduced, then terms of the loan are extended. Homeowners usually have to complete the trial of three months of making payments on time, and then they can enter the permanent phase.
United Credit Source can help you clean up your credit report and help you better qualify for programs like this.
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