Help With Loan Modifications
Headlines are now popping up with news about a loan modification process that is now available for homeowners facing foreclosure
. Getting a loan modified is time consuming and involves many rules and regulations which vary greatly between banks and lenders.
Foreclosure is not the desired end for either the homeowner or the bank. This is good news. The chances that a loan modification will be approved are enhanced if successful negotiation results in the homeowner meeting the lender's guidelines.
But, it's not as easy as it sounds. A homeowner usually desires a lower fixed interest rate, lower monthly payments and ideally, a reduction of the original loan amount.
The bank, however, is in business to make money, not to do people favors.
If you think you are eligible for a loan modification, remember that your bank will negotiate hard on its behalf. We all know that collection agents are not trained to be friendly or helpful. Their one goal is collecting money and maintaining the current terms of your contract. Realize that if a homeowner attempts to negotiate a loan modification by directly contacting the bank, chances are they will almost always fail to receive the best terms possible. Unbelievable stress, hours on the phone, faxing, filling out forms, "jumping through hoops" all in an attempt to get their loan(s) modified ultimately results with the homeowner in no better of a position than when they started.
The first step to lowering payments without refinancing is collecting the mandatory documents and paperwork required by the bank. Accomplishing that huge task can reduce some of the homeowner's anxiety and stress regarding their pending foreclosure. Moving forward in an organized way helps reduce the chances of missing any important documents that might cause the loan modification to be rejected.
Required Documents Check List:
Most recent mortgage statements, documentation showing taxes are current on the property, proof that your homeowners insurance is current, your last two month's bank statements, two month's pay stubs, W2's for the last two years, tax returns for the past two years, a hardship letter explaining the reason you are unable to continue making your current payment and what you have done / are doing to correct your hardship and any files or receipts you may have proving your hardship (medical bills, etc). If you are married, your employed spouse must also supply the same supporting documents.
Now that all those documents are in one place, the homeowner will need to attempt to get through to someone in their bank's Loss Mitigation Department. Challenging is a good word to describe trying to convince an employee working in the bank's Collection Department to let you speak to someone in the Loss Mitigation Department. Remember, these employees have but one function which justifies their employment, collecting funds.
So, here you are working a full-time job, maybe a second job also just to make ends meet. That doesn't leave the average homeowner much time to focus on the collection and negotiation process involved with a loan modification. The stress can be overwhelming and sometimes more than nerves can handle. Frustrated and fatigued with the whole business, a decision to search out a professional loan modification expert seems the only right solution out of a very personal dilemma.
Useful LinkIn the Tampa Bay area of Florida there is such an expert loan modification company. The Home Loan Crisis Center, LLC specializes in processing home loan modifications and have testimonials to prove they are very successful at doing them. When a homeowner realizes the maze of red tape, the needed documentation, the negotiation process and their own lack of knowledge regarding homeowner rights, the advantage of having an expert on the homeowner's side becomes obvious.
For many a homeowner, the loan modification process is the last available vehicle to saving their home which otherwise may fall victim to foreclosure.
by: Chatel Musgrove
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