House On Land
Mortgage loan modification enables you to make regular payments for your mortgage. More and more lenders are acknowledging the benefits of loan modification. When you opt for loan modification, you are requesting your lender to change the existing terms of your mortgage. Loan modification can bail you out if you are unable to make payments on time.
There are 3 ways your lender can help you out if you happen to qualify for mortgage loan modification. Your lender either reduces the existing interest rate or reduces the principal balance of your mortgage loan. He can also increase the duration of the loan.
How does mortgage loan modification work?
The first thing you do is contact the loss mitigation department of your lending institution. You apply for loan modification. You are also required to furnish few documents relevant to the loan modification process.
Documents required for mortgage loan modification
You will be requiring the following documents while applying for mortgage loan modification.
* Documentary evidence of your financial hardship
* Bank statements
* Documents for income verification that may include your pay stubs
* Tax returns
* Document showing the current value of your property
* Homeowner insurance documents
Qualifying for the mortgage loan modification process is very crucial. And you need to keep in mind the following aspects-
* If you are the primary loan holder, you should not have filed bankruptcy earlier
* Your home has to be your primary residence
* You must have fallen behind on payments for at least 3 months
* You availed mortgage loan not after January 1st 2008.
President Obama introduced the Make Home Affordable Plan to bailout homeowners and land loan holders in order to prevent their property from foreclosure. The plan aimed at helping approximately 4 million to 5 million homeowners. However, not all homeowners qualified for the program. And this bailout program helped homeowners with first mortgage. It didn’t benefit homeowners with second mortgages. There was another drawback of the mortgage bailout plan. It failed to address the needs of homeowners who had negative equity in their property.
June 16th, 2009 at 9:46 am
Good land loans are really getting rare…
June 16th, 2009 at 6:39 pm
I usually don’t read blogs… but this one is filled with info about land loans! Thanks!
June 17th, 2009 at 4:09 pm
The bad thing is that only a few companies are providing land loans for poorer families… Any way around it?
June 17th, 2009 at 5:48 pm
I adore how you give us all that advice on land loans! Please keep writing!
June 17th, 2009 at 6:22 pm
The company I am working for provides land loans up to 30 year of repayment. Should I go for it?
June 19th, 2009 at 2:53 pm
So true!
June 19th, 2009 at 3:30 pm
Would you go for a fixed or floating interest rate for land loans?
June 19th, 2009 at 4:06 pm
The market for land loans is perfect at this period! Thanks for your great post!
June 19th, 2009 at 4:42 pm
I have found a land I want to purchase after a long search. I just don’t know if now is the right time to buy land.
June 19th, 2009 at 5:20 pm
Thanks for the great article. Learned so much!
June 20th, 2009 at 8:27 am
The problem is that in an effort to take advantage of some bad credit holders, we find that several lenders offer bad credit loans with interest rates that are higher that anyone can conceive…
June 30th, 2009 at 5:22 pm
It would seem that thoughts are correct. Do you think that it’s best to buy land instead of a developed property though?
August 6th, 2009 at 11:12 pm
Your next move should be to try and get an idea about the lowest quotes out there, so that you can confidently talk to your personal banker and ask for a better land loan interest rate!
September 1st, 2009 at 1:29 am
how can I get a loan without my salary slips for buying land? 3 lac is shortage so want to get a loan…
September 1st, 2009 at 6:08 am
Hello Seetharaman,
As far as traditional land loans as concerned, you would normally need lots of documents in order to get approved. There is, however, an alternative.
You can try looking into no doc loans. There are some no doc land loans being offered, that wouldn’t require you to present your previous salary slips. Then again, you should keep in mind that the interest rate for no doc loans is normally much higher.
Hope this helps.
Dave
October 13th, 2009 at 9:48 pm
[...] Often private individuals spot a piece of property where they would like to have a home built either now, or at some point in the future. If there are currently no developments on the property, then a land loan would be the way to borrow money in order to purchase that property to be developed at a later date. Land loans are available if the property is undeveloped. If there is construction on the property you wouldn’t be looking at land loans, rather you would need to apply for a conventional mortgage loan. [...]
May 28th, 2010 at 1:07 pm
[...] Often private individuals spot a piece of property where they would like to have a home built either now, or at some point in the future. If there are currently no developments on the property, then a land loan would be the way to borrow money in order to purchase that property to be developed at a later date. Land loans are available if the property is undeveloped. If there is construction on the property you wouldn’t be looking at land loans, rather you would need to apply for a conventional mortgage loan. [...]