Unemployment is one of the most common financial hardships that people have had to deal with in recent times. This comes from how unemployment will end up causing a person to become unable to handle mortgage payments on a loan and to get the money that is needed to allow someone to make a decent living. This is something that might be a good thing to use as a hardship for a loan modification. However, there are no guarantees that a loan modification can be used in this type of case.
A loan modification can work in the event that a person is employed and has some form of income to work with. However, a loan modification that deals with a person being unemployed may not be used. This is due to how a person is not getting the money that would be needed to make payments.
Of course, if a person has enough tangible assets that can be sold off to make payments on a home a loan modification may be granted. This is something that can work to allow a person to spend less on the mortgage loan each month and to ensure that the payments one makes on a monthly basis will be easier to handle. This is critical to see because it can encourage a person to find a new job so fewer types of tangible assets can be sold off to make payments.
The biggest concern is that in many cases a loan modification may not be used for when a person is unemployed simply because of the concern of whether or not a person can find another job. A good person should be one that is motivated enough to find a new job after losing an old one. However, some lenders are going to feel that not every person is going to be searching adamantly for a new job. This is especially the case in today’s society where many people have stopped looking due to how there are few openings around in different industries.
The risk of a person not finding a job is something that will turn a lender off from working with a loan modification plan. The lender might feel that a person who is not able to find a new job is going to not bother with getting that job in the first place and therefore will decline the modification.
In many cases a lender might even try to encourage the person in this case to sell the home instead. This can be done to ensure that the lender will not have to worry about the foreclosure process on a home. This is a beneficial thing for a lender due to how expensive a foreclosure procedure can be for that lender.
It will be critical to take a look at this factor when working with a loan modification. A person who is unemployed cannot be guaranteed for a loan modification like a person who is employed can be for this service.
Contact : 1st Foreclosure Prevention
[email protected]
Contact No: 302-358-2610
Fax: 302-358-2626
Address: 3422 Old Capitol Trail, #1371, Wilmington, Delaware 19808
http://www.1stforeclosureprevention.com
