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7 Popular Loan Modification Questions

Millions of homeowners across America are turning to loan modifications as a means of obtaining long-term relief from overwhelming financial commitments. Naturally, when deciding to venture into new territory such as exploring the merits of loan modification, a number of questions come to mind. Here are a few of the common questions that are asked in relation to loan modification, along with relevant responses:


  • Who is a good candidate for loan modification? If you can provide your lender with evidence that you are facing financial hardship, that you have an adjustable rate or sub prime mortgage that you canít cope with, AND that you would be able to manage a lower, modified payment if given the chance, you are a suitable candidate for a loan modification.
  • What qualifies as financial hardship? While each situation is different, your lender will typically view the following as legitimate hardship: death in family, military service, loss of job or reduction in hours, divorce, job relocation, overwhelming medical bills, separation. One aspect of the loan modification application is the crafting of a hardship letter that clarifies your financial situation with your lender.
  • My house is underwater. Can I still get a loan modification? This might actually be to your benefit, because an underwater home (where you have negative equity because where you own more than your house is worth) will tend to cause your lender to think twice about initiating foreclosure proceedings because they would risk losing even more money. No-one wins as a result of foreclosure, and keeping you in your home may well represent the most beneficial option for all concerned.
  • Do I need to be behind on my mortgage before I can apply? No. Even the suspicion that you will be unable to cope with your payments in the near future is reason enough to initiate a loan modification application. As long as you are able to show that the financial difficulty you are dealing with is significant, you stand as a good a chance of loan modification approval as any.
  • Should I make use of a loan modification firm or attorney? To be honest, there really is no need. These services can easily cost you $3000-$5000 and beyond, without any guarantee of success or indication of your chances of approval. Besides the cost factor, many of these companies have been proven to be scam artists looking to exploit desperate and vulnerable homeowners. Your best bet is to utilize empowering loan modification software like Mycaal.com which is very affordable, unbiased, and provides with with step-by-step and expert support with every aspect of your application.
  • My mortgage is held by one of the ďfailedĒ banks. Can I still apply? Generally speaking, itís business as usual for the majority of these lenders. The new owners have assumed management and in certain situations are very keen to clear all the delinquent loans so that they leave a more favorable impression with the FDIC. This could benefit you as the new owners need to turn these banks around as fast as they can. However, it is worth noting that there is a transition period involved, and some borrowers are encountering delays as the new procedures are put in place.
  • How can I know who to trust? This can be a difficult question to answer. Itís often times impossible to know that people have unethical motivations until itís too late. Therefore, we recommend that you place your trust in an innovative loan modification software tool. Why? Because software like MyCaal is unbiased. It canít misrepresent information or mislead you for selfish gain. In addition, use of MyCaal software is extremely affordable, indicating a sincere desire to help the homeowner seeking assistance, as opposed to callously making a quick buck.


A loan modification is able to provide you and your family with sustained and significant savings that make it possible to save your home and your dream. Discover today how MyCaal empowers your application and maximizes your chances of obtaining the result that you seek.