With the economy in bad shape, millions of homeowners are literally living paycheck to paycheck, and barely, if able at all, can pay their mortgage. Homeowners who are facing foreclosure should seriously consider getting a home loan modification. No matter what type of home loan situation you are in, a modification can help you save money, or your home.

Here is the Home Loan Modification Process:

Find Out Your Current Financial Standing:
The first thing you should do when considering a home loan modification is to evaluate your current home loan. If you are, or have been, over 2 months late on a payment, and have hit 90 days over due, you are considered at risk, and can lose your home to mortgage default or foreclosure. Generally a foreclosure attorney will be referred to you by your mortgage provider after these 90 days

Depending on your situation, there are a few different ways to take your next step. If you think that by getting a better, lower monthly home loan payment you can save your home, you should immediately seek out some legal advice on the subject. This can help you get the home loan modification you need, and prevent, or even stop the mortgage lender or bank you have from foreclosing or taking your home away. Also, a lawyer may help homeowners who are defaulters as they will have a much harder time getting help on their own.

For homeowners who have not yet defaulted on their mortgage, yet still are having a hard time paying the monthly home loan, there may be enough time to get a mortgage modification without the assistance of a third party, like a lawyer. If this is your situation, you should prepare, and send, a letter of financial hardship to potential banks or mortgage lenders. Research writing a proper letter of financial hardship prior to submitting one to a lender or bank.

Regardless as to whether or not your using a lawyers help, or going at it on your own, you will need to submit, documents which support hardship, and income claims. This can include things such as pay stubs, bank statements, tax returns, and other relevant information that is in your statements.

After you have done this, and submitted your home loan modification application, and possibly a letter of financial hardship,wait for the mortgage lender to review your application and get back to you. Do not constantly bother them with status update phones calls or emails. Call once a week for updates.

-M Petrone
www.RefinancingCondo.com

Subscribe via email

Enter your email address:

Delivered by FeedBurner