Always Have a Plan B Ready for a Loan Modification
A good loan modification proposal can get a person to get one's mortgage loan to work with terms that a person can actually afford and agree with
. However, this is not always going to be the case with every single plan. Sometimes a lender is not going to go ahead with a proposal. The lender will end up refusing it altogether. It is best to focus on getting a good secondary plan to work in the event that a loan modification cannot work.
It will help to first take a look at some secondary Loan Modification proposals that one has. These proposals are ones that are going to be less favorable than that of what one is promoting. However, they will still be beneficial because they can be terms that will be better than what one is dealing with currently.
Here is an example of how this can work. Let's say that a person wants to get a mortgage loan to have its interest rate reduced from 8% to 3.5%. If the lender refuses this proposal then it may be best to work with a secondary plan where the interest rate will go down to 4.5%. The percentage can continue to go up until a proper modification is agreed upon. This can take a bit and the results may not be what one wanted. However, the interest rate will still go down if the person is successful, thus reducing the monthly payments that would be involved in a mortgage loan.
The second thing to do is to consider getting some investigative work handled. Sometimes it helps to focus on getting one's loan checked to see if there are any errors that can compromise it. Using a forensic loan audit may be the best thing to do in the event that one's alternate proposals for a loan modification fail to work. This is used as a means of checking on the condition of one's loan and to see if a lender has been involved with any infractions on one's loan.
Another alternate option is to consider what can happen in the event that absolutely no loan modification options can work. It may be best to work on getting a short sale to work on one's home. This is something that should only be considered as the last option when it comes to avoiding a foreclosure. After all, the main goal of avoiding a foreclosure is to make one's home more affordable and not to necessarily sell it off altogether. This should not be considered immediately at first.
In summary it helps to ensure that a good secondary plan can work when it comes to a loan modification. It is best to think about a number of alternatives in the event that a modification cannot work the first time around. Having a good secondary plan is the key to making sure that something can be done to avoid a foreclosure even if it isn't the first option that someone had in mind.
Always Have a Plan B Ready for a Loan Modification