And the qualification methods are similar as well. You’re basically dealing with the same banks on your car loan that you would encounter with a home.

So what are some factors that will help determine your qualification status?

1. Monthly income and expenses. When all your income and all your expenses are totalled up at the end of the month, what is the difference. If it’s excessive in either a negative or positive direction, that will hurt your chances of qualifying. Too much income and the lender will say you should be able to afford your payment and you do not need relief. With too much debt, the lender will question whether or not a loan modification will even make a difference. You want the difference to be close to 0 with a few hundred dollars on either side being acceptable.
2. Hardship. Lenders want to know that you’ve experienced some type of hardship to cause the problem. This usually indicates that it isn’t through negligence on your part, but simply unfortunate circumstances that you are unable to make the full payment.
3. Are you late on the payments? A lot of lenders won’t deal with anyone that’s current on the loan with the idea that if you’re current, you can pay. While it helps to be late, we never advise anyone to purposely miss a payment. Remember, it’s always best to stay on top of your payments. Our services are best applied when that becomes impossible.

Give us a call to have one of our specialists discuss your situation in detail. We can give you an indication regarding whether or not this is a good program for you.

Yep. Without as much publicity, many people don’t realize that even your car loan can be modified. And you may be surprised to know it’s not all that much different from the more highly publicized forms of loan modification.

What Is It?

The simple answer is that a car loan modification is a permanent reduction of your monthly loan payment as agreed upon between you and your lender.

Through our consultations and negotiations, we will work to secure you a payment that is affordable based on your current financial standing.

Do I Qualify?

It’s possible you can qualify, but it takes a consultation to figure that out. We have to know details about your financial situation, any hardships you may have faced (or are currently facing) and your current payment status.

Without getting in depth on your situation, there is know way to make a reasonable judgement about your qualification.

Read more about qualifying.

What if I lost my job?

You can still qualify. Your car is often important to getting a job and you want to do everything you can to keep your vehicle in your driveway even when times are tough.

Read more about what to do when you lose your job.

I’m Upside Down on My Loan. Can I Be Helped?

Absolutely. In fact, that’s a chief reason to consider a car loan modification. For whatever reason, sometimes people end up with a car that is worth less than what is owed on the loan and it can be a financial burden.

Read more about being upside down.

How Do I Get Started?

You can call us or fill out an online inquiry to get started. Our consultations can last up to an hour depending on your situation and they are always free.

Unless you live in a major metropolitan city like New York where mass transportation is a viable option, your car is integral to working whether it’s making a commute or doing your job. If you lose your job and can’t afford your car, it puts you in a tough spot as you try to find a new place of employment.

Fortunately, losing your job doesn’t have to mean losing your car.

Get an Auto Loan Modification

Lenders will work with you when you can show a hardship and the ability to repay on a modified loan. Perhaps your unemployment check will cover a reduced amount.

Job loss is a scary thing, but in these tough times, there are options. Be proactive and you can get through it.

There are a couple reasons this can happen.

1. Accidents. Through no fault of your own, an accident can change the value of the car in a hurry.
2. Bad Financing. You may have been roped into some financing that never gave you a chance. Some longer term loans on used cars can often linger for too long and eventually the car is devalued enough that you can’t sell it for what you still owe. On top of that, there are creative financing methods or high interest rates that can sabotage your ability to pay down the loan as fast as the car is depreciating.

What to do

Your car losing its value so much that you owe more than it’s worth will not in itself qualify you for a loan modification, but it’s a good start, especially if the reason why it happened is compelling to the lender.

You should speak with a professional that can help you put together your case. Things like your financial situation and hardship will factor heavily into your qualification.

Of course, you can always hold onto the car until it’s paid off, but that would require paying a lot more for the car than would ever be financially prudent. A loan modification offers the right option when your car simply isn’t worth keeping.

The answer is yes and while not as impactful as modifying your home loan, every little bit matters.

Who Qualifies?

That’s a broad question, but anyone struggling to make their auto loan payment should consider exploring the possibility of an auto loan modification. Why wouldn’t you? These are tough economic times and there is a lot of recognition now that bringing loans more into line with what is realistic for someone to pay is a win-win for both lender and borrower.

What Does it Take to Qualify?

Qualifying for a modification on your car is not automatic. A number of factors come into

Auto loan modification, while not a headline stealer, can still save you some money every month.

play. Are you late on payments? What does your overall financial picture look like? Do you have a hardship that helps explain why you cannot afford your car payments?

All are important questions and must be carefully considered before making an appeal to your lender for a modification.

You can read more about qualifying here.

What Will an Auto Loan Modification Do For You?

imagine you are paying $500 per month on your car loan. Perhaps it used to be possible for you to pay this, but an even in your life made it an unaffordable payment. You could be sending some money every month, but the lender will only accept the whole amount. You’re stuck.

Now imagine that same payment is modified permanently to, say, $300 per month. You can afford this and the lender will accept the payment. All of a sudden, you’re making full payments on your car and don’t have to worry about it being repossessed. Big difference, right?

In an ideal world, you’d be making that payment you originally committed to. However, today’s reality is that millions of people are struggling due to economic forces that have made it impossible to stay afloat.

Loan modification is a way for you and your lender to work out an agreement that is helpful to both sides.

• Boat. It may have been a possession from better times, but don’t let a toxic loan on your boat sink your financial situation. It’s possible your lender will want to work something out so that you can continue to make payments. Lenders aren’t exactly in the business of being boat owners so you might have a good chance of working out a more affordable agreement through a boat loan modification.
• RV. Some RVs are as expensive as a house and carry hefty mortgages. These too can be modified. Certainly, you can choose to let the property go and default on the loan, but if you have a desire to keep it, RV loan modification is the way to go.
• Off-road. Do you have an ATV or other type of off-road vehicle? Check with us to find out if it will be eligible for a loan modification.
• Motorcycle. For a lot of people, your motorcycle is your primary form of transportation and it’s simply impossible to live without it. If you aren’t able to meet your monthly payment, take a look at getting a motorcycle loan modification.
• Others. Don’t see your vehicle type listed? That doesn’t mean we can’t help. Let us know what you need help with and we’ll advise you on your best course of action.