Military and veteran mortgage modifications can give veterans and active-duty service men and women a second chance at home ownership. When the economy collapsed, unemployment skyrocketed and the number of homeowners in foreclosure increased substantially, many veterans and military personnel were left with no choice but to default on their mortgages.
In light of the current economic downturn, the government was forced to step in and take action in order to prevent the soldier’s financial situation from deteriorating further. The government created the Home Affordable Program, which grants generous tax credits and federal loan modification assistance to those homeowners who are struggling to keep up with their mortgages. However, there is a way to get these benefits – they need to be modified, and only veteran and military mortgage modifications qualify for this preferential treatment.
Veteran and military mortgage modifications are completely different from regular mortgage modifications because they are aimed primarily at helping veterans and military personnel avoid foreclosure. There are several problems that borrowers can experience after having their homeowner loan modified, and they typically have to endure substantial fees to take advantage of the specialized programs.
For starters, you will have to undergo an additional credit check and you won’t be eligible for the same benefits that your regular homeowner loan qualifies you for. Since the modification may require a lot of work on your part, you might find it worthwhile to hire a lawyer to help you with the modification. This can help you out tremendously and save you a lot of money in the long run.
If you don’t want to take the time to hire a lawyer, there are specific qualifications that you need to meet. You should show that you are currently unemployed, in default on a mortgage or have defaulted on a loan in the past five years. You also need to prove that you have missed at least one month of your mortgage payment.
If you qualify for a loan modification, you will need to provide detailed documentation and your employment and monthly income information. The lender will then review your situation and determine whether or not you are eligible for a modification.
It may seem like a daunting task, but if you take the time to research the process thoroughly prepare yourself, you will be able to avoid the common mistakes that homeowners make when seeking out help for their homeowners loan. One of the most common mistakes is to take the first loan modification offer you receive without doing any serious research. The wrong decision could end up costing you thousands of dollars.