Loan Modification - The Step By Step Process
With the recession still looming large several people across the country are literally
leading a hand to mouth existence living from pay check to paycheck. Need less to say, making their monthly mortgage payments is turning into a task for most people and if you also fall in this category and are facing the threat of foreclosure you should seriously consider opting for home loan modification. Regardless of the type of mortgage a home loan modification is possible and may be your only option to save your home.So if you are interested in getting a mortgage modification here is the step by step process:
Evaluate your situation: The first thing that you will need to do before you seek a home loan modification is to evaluate the status of your loan. If you are more than 60 days late in making your payment then once you hit the 90 day mark, you will be considered a defaulter and may be in danger of losing your home. Normally after the 90 day period the lending institution will refer your case to a foreclosure attorney.
So the next step you take in procuring a mortgage modification will largely depend on the status of your loan. If you feel that if the monthly payment is brought down you will b able to meet it and save your home you may want to seek legal advice because you will already be a defaulter. This will ensure that you beat the attorney of the lending institution and stop the foreclosure. At this point getting an attorney may be your best bet because the bank may not entertain your request for a home loan modification if you approach them on your own.
However, if you haven't defaulted on your payment as yet but are finding it difficult to meet the payments every month, you will have enough time to try and procure a mortgage modification on your own. If this is the case, the next step will involve sending a home loan modification hardship letter to the bank. Make sure that you do your homework well before drafting the mortgage modification hardship letter.
Whether you go on your own or through an attorney the next step in procuring the home loan modification will involve the submission of documents that will prove the veracity of your claims. These will usually include two recent pay stubs, latest tax returns and any other documents that can prove your statement.
Once this is done the last step in the mortgage modification process is to wait for the bank's response. Remember that you can lose your home within three months of receiving a loan default notice so it's imperative to act fast.
If you are considering mortgage modification, you should really look into 60 minute home loan modification. It is a great resource that contains a lot of important information about the process of applying for a mortgage modification. It was created by a loan modification expert who has modified numerous home loans. The kit included a professional hardship letter outline, and one on one support in case you have any questions. It is a must have for homeowners.
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