A mortgage modification is usually done when a homeowner has fallen behind in payments, is in an adjusted rate mortgage, or has a home that has dropped in value making refinance impossible. Most of the time, a homeowner can get help lowering their home loan payments to an affordable level by asking their lender for a mortgage modification. Here are some tips for homeowners that they should know before calling their mortgage lender and asking about a mortgage modification.

Some of the benefits most often sought when modifying a home loan are:

-To lower monthly mortgage payments.

-To prevent your home from being lost to loan default or foreclosure.

-To save some money every month and use it to pay other bills and debts.

Many homeowners are struggling right now due to the bad economy, and terrible housing market. Many jobs have been lost, and property values are plummeting. However, a mortgage modification is the perfect solution for many people who need to lower their mortgage payments, save money, or prevent their home from being lost. Here are some tips and modifying a mortgage that will help ensure you get approved.

-Prepare a Financial Statement
Prepare your financial statement by writing down your monthly expenses that are mandatory to your families basic health and well being. These expenses include medical bills, grocery bills, clothing, gas, car payments, insurance, and other necessary things. Add up these costs and average them over a 3 month period to get a good idea of what they are. In most cases, a mortgage lender or bank will want to review these financial statements and will have questions relating to them before they will consider a mortgage modification. With so many homeowners looking for a mortgage modification, having this information prepared ahead of time shows you are committed to the process, and saves everyone time and money.

-Prepare a Financial Hardship Letter
This letter should be no more than 2 pages and should state the reasons you need a mortgage modification. Some of these can include, loss of a job, reduced income, your adjusted rate mortgage is increasing and you can not refinance due to dropping home values. You will want to have this letter prepared and ready to go so when it is asked for, you have it, and no additional time or money is wasted. Do not lie on these letters, always tell the absolute truth to reduce the chance of you facing the same problems in the future.

-Prepare for an Initial Contact Time of Up To 2 Hours
When dealing with a mortgage lender or bank, expect the initial phone call to last upwards of 2 hours, maybe even more. It will take a lot of time when you are ready to call in to a mortgage lender or bank. You will have to wait to speak with a representative, and when you finally speak with one, you will need to explain your entire situation in detail. Take advantage of the phone time you do get with your loan representative and let them know you are fully prepared with all documents ready to go. This will make you a much better candidate for getting help in a timely matter as the lender or bank knows they will not need to waste time or resources in helping you modify a mortgage.

These tips will help any homeowner, regardless of the reasons they want it, or of their financial position, to get a home loan modification approval in a timely manner.

-M Petrone

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