Can you still get a loan modification if you are unemployed?

I woke up this morning poured a cup of coffee and started wondering if people who tried to modify their own mortgage really had anywhere to turn to ask real questions to real people who do this for a living. So I said, I have been familiar with this industry for quite some time now and why don't I just address some of the common questions the Do It Yourselvers have.

Lets be clear on one thing no matter what, if you are unemployed, you don’t have a paycheck coming in to make your mortgage payment. If you are trying to get your loan modified, a key question is: Can I still apply for a loan modification if I have lost my job?

With Foreclosures still on the increase, the financial crisis is at the worst it has been. The unemployment rate is only adding to the mayhem. More people are being laid off from their jobs adding to the perpetual cycle of foreclosures. When this crisis began, the unemployment rate was not at an all time high. It was a prerequisite for a loan modification that a homeowner was employed. Now the unemployment rate is in the double digits, lenders are faced with more and more homeowners being jobless.

A lender still wants to see that your income will be able to support a modified payment but they are willing to be flexible. If you are unemployed you can use your unemployment benefit in place of your regular paycheck. You would send your lender copies of your benefit checks as proof of your income.

You have to minimize your expenses! This is a must in order to try and balance the decreased amount of income coming in. It is like preaching to the choir but sometimes we need to hear it anyways: If you are in this situation and if aren't currently looking for a new position right away. Honestly, some say that it is best to wait until the last possible moment to apply for your loan modification until you find a job but in this market that could be 6 months from now. Start the process right away because it takes time and keep your head up and hope that you will be able to secure employment in the mean time.

If the lender feels that you will have another job lined up or several interviews for new positions, they are more likely to approve your loan modification.