Who is Eligible for a Loan Modification?

The guidelines for loan modifications are still changing. However, it seems that the FDIC’s loan modification program is the most likely program to become a widely practiced solution for troubled homeowners.

There are no universally specific set guidelines that identifies who qualifies for a loan modification. There are two primary factors that are considered:

1.      Is the homeowner delinquent or in imminent danger of delinquency?

2.      Is there evidence of financial hardship, and can it be documented?

Lenders are unlikely to be willing to talk about loan modification if you do not meet the above criteria. If however, the lender’s investment is at risk and the likelihood of additional expense and/or loss is imminent, most lenders are currently willing to discuss a loan modification.