Homeowners with at least three-month delinquency from its mortgage should right away seek for counseling. This situation might already be considered for a loan modification. This is one of the few initial requirements under the new loan modification program. This guideline is intended to be true across all mortgagors.

In the new guidelines, as detailed by Freddie Mac Inc. and FHFA, homeowners may consider applying for loan modification if payments are delinquents. The minimum is three months. If a property is already foreclosed, chances for availing a loan workout might be difficult. At this point, homeowners will be at the mercy of its mortgagor.

Granting that homeowner is already a delinquent, mortgage lender conducts an initial evaluation of income strength. Borrowers' gross income should at least be able to cover 38% of mortgage do, on a monthly basis. Initially, homeowners will be required to remit the payment for three months. This is to test if homeowners will be able to pay with the new monthly do regularly for three months.

After the trial period homeowner and mortgagor may now start with the loan modification process. So it's wise that the homeowner has already documented its financial state, so everything is intact. As soon as a mortgage lender will entertain homeowners' proposal, all documents are ready for submission.

Among these documents include, cover letter, hardship affidavit or letter, documents proving a state of hardship, and homeowners' loan modification proposal. In addition, homeowner is required to be residing to the subject property; otherwise no modification of loan will transpire. This could mean submission also of proofs of residency to the property.

Eligibility according to type of home property is also a pre-requisite for loan modification. Such as a one-unit family occupied condominium, or primary residence manufactured homes. And state of these properties should not be beyond repair or dilapidated.

Homeowners are guaranteed to be help by its mortgagor to avail for a loan modification, given that all pre-requisites must be complied. Although mortgagor will gain less if foreclosure is declared, because of present housing industry issues. However, it doesn't mean for homeowners to be complacent about a possibility of foreclosure.

Homeowners should not wait for the notice of foreclosure, when mortgage delinquency becomes apparent, rather, they visit mortgagor right away. And start to settle with preliminary requirements to avail a loan modification.