An auto loan modification is not all that different from its residential cousin. The point is still the same. You have a loan you cannot afford and have incurred a hardship brought on by difficult economic times or unexpected circumstances in you and your family’s life .
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?
- 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.
- 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.
- 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.
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