Many homeowners in the United States are having difficulties paying their mortgage due to current financial struggles they are facing. One of the main questions they ask is “Is there someway to stop the foreclosure proceedings?”
Yes! With a loan modification you may be able to bring your defaulting mortgage current once again and possibly achieve a lower monthly payment as well.
If you can afford your home and just not the current loan, you may qualify for a loan modification. Also if you have become delinquent on your monthly payments because of temporary struggles, negotiating a loan modification with your lender will resolve that issue. A loan modification will give you a fresh start and give you a chance to keep the home for you and your family.
Before you attempt to apply for a loan mod you must provide a hardship to your lender as a reason why you are currently having difficulties paying your monthly payments. You will be required to write a detailed letter explaining the reasons to why you are facing these difficulties. Be honest as possible when writing the hardship letter because your lender is going to ask for all of your financial information including pay stubs, bank statements, tax returns, etc.
Your lender will also pull a credit report to see all of your other debts. Some good examples of hardships lenders are considering are; incarceration, illness, loss of job, reduced income, death in family, medical bills, and major damage to your property(such as a natural disaster or possibly even vandalism).
Once you have prepared your hardship and financial information you are now ready to make the initial call to your lender. Give the representative a brief description of your hardship and let them know you want to apply for a loan modification. You will be then asked to fax in all the information I had listed and the modification process will begin.
Something everyone needs to know is that it is very important to be polite, patient, but firm at the same time. Remember the lender is the one providing you with assistance and they also have many other modifications in process as well. Every modification is on a case-by-case basis and can easily take four to six months for an answer. Also take in thought that modifications are not guaranteed and you may have to find another way to avoid foreclosure.
But if you are successful and achieve a loan modification you will bring your loan current and begin with a fresh start. Hopefully with a lower interest rate and monthly payment as well!