Summary: Many borrowers find it difficult to make their monthly mortgage payments because of financial hardships. Loan modification is the answer. All you need to do is follow these tips and tricks***.***
Keeping up with your monthly mortgage payments could be a tough job, especially when things don’t go as expected. There may be times when you may lose one of your sources of income or you meet with an emergency that requires you to spend a lot of money. If such situations are temporary you could benefit by asking for a loan modification that will either lower your interest rate or extend the term of your loan. You will still be making your monthly mortgage payments; but they would be a lot more affordable.
Not every loan modification application receives the approval of the lenders. Since lenders are in no way obligated to modify loans, it could be a tough job trying to convince them. Nevertheless, here are a few tips and tricks that can take you towards mortgage modification success:
Ask questions; get clarity
Understanding what exactly the mortgagor would provide is very important before you strike a deal with your lender. Make sure there are no misunderstandings that could cause future problems. A lot of mistakes can be avoided if you ask questions that give you clarity.
Be persistent in your efforts
Remember – your lender is actually doing you a favor by modifying your loan. Hence it is your duty to co-operate as much as possible. It is not going to happen in one go. You will have to be persistent. If the mortgagor asks you to submit your documents again and again, you will have to do it without getting frustrated. Do everything you can to get your loan modified.
Seek professional help
There are many loan modification firms and counselors who make it possible for borrowers to get their loans modified. They know what it takes to get your application approved. Therefore, if any of the loan modification counselors or firms getsthrough in touch with you loanleads modification live transfer , make sure you take their help. As experts, they can negotiate with your lender on your behalf and help you make your monthly mortgage payments affordable.
Get information about your lender
If you want to enjoy more flexible terms on your loan, you need to find out if your bank actually owns your loan. You can ask the mortgagor directly or visit Freddie Mac or Fannie Mae online to see if your loan is with them. Get as much information as possible about your lender which will help you obtain a better modification.
Be honest
Lying to your lender will not work when it comes to loan modification. You will need sufficient proof to convince the lender about your financial situation. Be ready with documents pertaining to your IT returns, monthly gross income, savings, income and expenses, and other assets. Don’t fudge any of the numbers just to make yourself eligible for loan modification. This could make you end up with a foreclosure sooner than you can expect. Loan modification counselors who contact borrowers tend to make this point very clear.
Make sure the financial hardship letter is convincing
The financial hardship letter is one of the most important documents to submit when it comes to mortgage modification. It has to explain your financial hardship in a polite yet detailed way. Try and include all the information that will give the entire picture to the mortgage modification servicer.
Be realistic
You have to be clear about how much you can pay as a monthly mortgage payment before you apply for a loan modification. If the interest rate offer you receive is too high, you should ideally not sign the deal. Explain your constraints clearly and let your lender know how much you can manage to repay with relative ease.
Document everything
Loan modification application involves a lot of to and fro communication with your lender. A wise thing to do would be to record every conversation or store every correspondence that you have with your lender about loan modification. This way if things go wrong and foreclosure knocks at your door, you will have proof that you can use to your defense. If you are sending some documents to your lender, make sure you use a certified shipping company that gives you proof of delivery.
Be flexible in your approach
There are very less you may not even get any response. You have to be prepared for every situation no matter what it is. Follow up courteously to know the status of your application, but have patience.wait chances of things going your way when you apply for a mortgage modification. The process might take anywhere between 30 to 90 days before obtaining the approval. If you call you may be asked to wait; at the end of the
Submit
the proof of your income
Providing proof of your income to your lender is a must if you want him to consider your loan modification application. Apart from the valid income documents, you may also have to submit a duly signed IRS Form 4506-T that will enable your lender to access your federal tax returns. Without this you may not be able to get your mortgage modified.
Suffering financial setbacks is common for everyone, be it through a divorce, an injury, or even a natural disaster. However, it doesn’t mean you have to let go of your home and lose it to a foreclosure. You can always get in touch with a loan modification firm to help you make your monthly mortgage payments manageable. Where there is a will there is always a way.
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