subject: Loan Modification - Stop Making Monthly Mortgage Payments? [print this page] Going through a loan modification could provide you with lower monthly mortgage payments and help avoid foreclosure if successful. If you're having a hard time making your mortgage payment currently, you may need to consider a loan modification to get the help you need. A common sentiment around the loan modification industry is that homeowners have to stop making their mortgage payments if they want to have a realistic shot at getting approved for a modification. While this may be the case in some situations, it is not necessarily a hard and fast rule of modification.
Why Stop Payments?
Stopping your mortgage payments indicates that you are in trouble financially and that you may be aware that your home could go into foreclosure. In many cases, the mitigation department at your mortgage lender may tell you to stop making your mortgage payment if you want a modification. This is because most large mortgage lenders will not even consider a modification unless they are dealing with a borrower who has missed some payments. They probably already have plenty of borrowers that have missed or are behind on their mortgage payments to work with, so they don't have the time or resources to work with those who are still current.
Getting Help
If your lender has not told you to stop making payments, and you're not sure what to do, you may want to contact a loan modification attorney. A good loan modification attorney will be able to assess your situation and determine if it is in your best interest to stop making your mortgage payments. The attorney will be able to recommend a certain course of action for you. At that point, the attorney will also be able to contact your mortgage lender for you and begin the negotiation process.
In order to get a modification, you'll have to work closely with your mortgage lender. If you take on the process alone, you will be in charge of negotiating with the lender to make sure everything is handled properly. When you hire a loan modification attorney, everything will be handled for you.
Considerations
There is not one simple right way to handle your mortgage payments when you are interested in a modification as each homeowners situation is different. Your best bet is to get advice from an attorney or to contact your lender to find out what to do. This way, you'll be able to avoid making any rash decisions that negatively affect your ability to get a modification.
If you do decide to stop making your payments, you should try to save that money instead of spending it on other things. If you save the money, you may be able to put yourself in a stronger position to negotiate, or to have your loan modification attorney negotiate with your lender. When you spend that money and do not have any savings, the lender may be less likely to believe that you have your financial affairs in order or truly need the loan modification. At that point,you may not be able to get approved for a modification from your mortgage lender.
by: Alvin Clark
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