Mortgage Loan Modification - How Loan Modifications Work

When you signed a mortgage that allowed you to purchase your house, you probably thought that the deal you signed was final.  Either you make the payments for the next twenty, thirty or forty years, or you forfeit the right to own the home.  Many people have found themselves overwhelmed by the reality that they are losing the homes they fought so hard to save up for and buy.  What they may not know is, that mortgage you signed is not the end of the deal.

A loan modification allows the borrower to negotiate with the lender to adjust the terms of the loan in order to get a lower monthly payment.

If you are facing foreclosure, you have essentially the following options:  you could file for bankruptcy; you could walk away from the house; you could sell your home; you could conduct a short sale (selling your home for less than the mortgage pay off amount); you could get a forbearance; you could get a deed-in-lieu-of-foreclosure (where you sell the home back to the lender); or you could get a loan modification.  A loan modification will have the easiest impact on your credit, will allow you to stay in your home and will lower your monthly mortgage payments so that you can continue to stay in the house over the long hall. 

There are usually five criteria to qualify for a loan modification, although others exist. 

1.  If there is a job loss or unexpected unemployment by one of the people who own the house, you may be eligible for a loan modification.

2.  If there is a sudden illness or medical emergency, you may be eligible for a loan modification.

3.  If there is a divorce or the loss of a second income, you could be in line for a loan modification.

4.  If you are unable to pay an adjusted interest rate mortgage with no option to refinance, you may be in line for a home loan modification.

5.  If you have excessive debt obligations, you may be in line for a loan modification.

If you want more information, or if you want to see if your particular situation makes you eligible for a  loan modification, then you should speak with a  loan modification attorney right away.  A loan modification attorney can educate you on the current real estate market and how you can take advantage of the current situation to help you get out of the potentially devastating financial crisis you may be in.  A loan modification attorney can also work on your behalf to get you the best deal possible by negotiating directly with the lender.

Federal and state loan modification programs have been fairly unsuccessful, leading many to believe that the best way to go about getting a quality loan modification is through a loan modification company.  Contact a loan modification company today to see if a loan modification is right for you, and if a loan modification attorney can help you get the deal you need to stay in your home.

Get a Loan Modification Strategy

If you have a strategy while trying to procure a loan modification, it is always a good idea.  Approaching any challenge, no matter how big or how small, without a strategy can lead to headaches, missed opportunities and all around chaos.  It’s important to have a loan modification strategy, because it allows you to have a goal, a plan and a perspective.  You can always change this strategy, especially if you find a better way of achieving your goals.  However, a solid loan modification strategy can motivate you to get the best loan modification you can, which will save your home and possibly even thousands of dollars.

Gather Your Information

A loan modification requires a great deal of research and information gathering.  For example, you need to have all of your financial information for the last two years in order to apply for a loan modification.  This means bank statements, tax returns, pay stubs and so forth.  If you are applying for a loan modification, you should start to go through your records and gather as much of this information as possible.  If you need to get your bank, job or the IRS to send you papers you’ve lost, you better contact them right away.  A loan modification attorney can help you organize your information and give you an accurate breakdown of every piece of paper you’ll need to move forward.

Get Your Writing Pen Ready

Loan modifications require a letter explaining the situation you find yourself in, and why you need a loan modification.  This letter will explain any hardship, any life changes and what your ability to pay is, and without this it will be impossible to get your loan modification.  A loan modification attorney can help you write the letter, because odds are your loan modification attorney has helped write hundreds of others.

Know Your Lender

Banks and lenders are taking different approaches to loan modifications, and knowing what to expect from your bank is important.  Even a few quick Google searches for Washington Mutual loan modifications, or Wells Fargo loan modifications will help you see what other people are experiencing with the banks. 

Contact a Loan Modification Attorney

Loan modifications are difficult, complex and they can take weeks and months to accomplish.  Having a qualified loan modification attorney working with you to properly execute your loan modification is vital.  Your loan modification can help secure some breathing room for you in the short term or the long term, breathing room that can help you get back on your feet financially.  Loan modifications have been around for a long time, so having an experienced loan modification attorney working with you will only help that much more.

A loan modification attorney can walk you through the challenges of dealing with lenders, can help you prepare the best loan modification application possible and can follow up with the lenders when you can’t.  It is a difficult process to enter into without a qualified professional.  However, an experienced loan modification professional can make all the difference.

Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.