Once we contacted our lender for mortgage modification help they asked us what we could pay monthly for a payment. So if you are thinking about contacting them for a modification then you must have a good grasp of your finances. You need to right down what you are bringing in on a monthly bases are far as income or revenue is concerned and you must also have a good understanding of all your monthly expenses. This will also help you get a better understanding of where you are financially. This process will help you figure out what you can afford in the form of a monthly payment to them. Remember your doing this to try get them to agree to a lower payment to help you out. So you need to have a number in your head that will be ideal for you and you will aim for that number in the negotiations. They on the other hand need to see that you can make that modified lower monthly payment if they do grant you a modification. If your mortgage lender does not see that you can afford the lower payment then the mortgage modification will not happen.
There a few options that they have to help lower your monthly payments.
Below is a list of the most common mortgage modification options:
lowering the mortgage interest rate
reducing the principal balance
fixing adjustable interest rates within the mortgage loan
increasing the loan term throughout the mortgage
forgiveness of payment defaults and fees
or any combination of the above
We used the first option which lowered our mortgage interest rate.
Once you come to an agreement with them on the payments they will send out a mortgage modification agreement which spells out the new terms of the loan and it will be binding once you sign it and send it back to them. Our modification agreement offer had a time frame attached to it. It basically said that we had 10 days to sign the agreement and mail it back to the mortgage company. Believe me we made sure it was back in time to be effective.
As I said above it took us 3 months to complete our mortgage modification process. It took the mortgage company a while to finally get the new agreed upon monthly payment amount into their system and on our payment stubs. Dont be alarmed if the new payment is not on the next statement. Just call them and let them know that something is not right. Your representative should be more than happy to help you out.
by: beachdudeAbout the Author:Fore more information on amortgage modification you can visit this public website.