Homeowners are trying for loan modifications to lower their monthly mortgage payments during these difficult financial times. Homeowners are being backed by the current Administration to keep them from foreclosing on their homes. Since this is the case banks and lenders are putting criteria/requirements into place based on the guidelines set by the Home Affordable Modification Program. Theses guidelines/criteria/requirements include:

• The property the homeowner is applying the loan modification for must have been secured before January 1, 2009.
• The homeowner needs to currently live on the property.
• The full amount of the mortgage cannot be more than $729,500.
• The homeowner must sign a document that legally says they are under a financial hardship.
• The homeowner must present the requested documentation of all their income, tax information and debts.

Besides the list above, many banks and lenders have added guidelines/criteria/requirements they may add to the list, which is up to them. These could include, but are not limited to your credit score. Some of the banks/lenders will turn you away for not so great score, while others will work with you depending on your situation. The guidelines/criteria/requirements can be found on their website, but if you cannot find it give them a call.

When calling to get information or to apply for loan modification you will want to speak to the Loss Mitigation department. Most lenders will have a Loss Mitigation department, or it will be named something similar. Some lenders are not quite sure what they need to do with a loan modification.

Every lender does have guidelines they follow; they aren't always easy in every situation. Some homeowners find it not worthwhile to try and get to the Loss mitigation department, so they try to get help from a consultant. Lenders want to work through the debt and get as much back as possible, they do not always know how to handle the situation or what to do.

If you know and understand the guidelines/criteria/requirements it will make it easier for you to negotiate with the lender so you can receive loan modification assistance.