How To Get A Home Loan Modification To Save Your Home From Foreclosure
- Are you getting the run-around from the bank?
- Have you entered into one or more trial modifications but still not offered a permanent loan modification?
- Are you more than 4 or 5 months behind in your mortgage payments?
- Are you worried the bank is going to sell your home and force your family to move?
Loan Modifications Are Frustrating
- Is your bank asking for the same paperwork over and over?
- Getting no response from your lender?
- Faxing documents again and again?
- Spending hours on hold?
- Getting the Runaround?
- Getting conflicting information every time you call?
- Always speaking to a different agent?
- Are you waiting and waiting and waiting for answers?
What Makes The Process Difficult?
The banks give homeowners a hard time when they try to modify their mortgage. Bank representatives shuffle homeowners between departments giving different answers to basic questions. You have to fill out applications and provide documents over and over. They might lose the documents, or say the application has expired and tell you to do it all over again. This process can be costly and can drag on for months—or years! Sometimes the application gets wrongly denied, or denied without you being given any reason whatsoever. While this is happening, you’ve gotten further behind in your mortgage payments.
Loan Modification Is THE Best Tool
If you are facing the risk of losing your home to foreclosure, a loan modification is the #1 option. If you qualify, then a load modification will give you the most desirable outcome, as opposed to a bankruptcy. A loan mod will roll all of your missed payments into the principal and the loan payments will be recalculated based on an interest rate of not usually more than 4% and a term of 30 years. Interested in learning more about why loan modification is the #1 tool to save your home, read our post: Why Is Loan Modification The Best Tool?
Do I Qualify For a Loan Modification?
You must have the correct debt to income ratio. Your income must be enough to pay the loan and other expenses. Therefore, it starts with income. Then, look at your expenses: your expenses plus your mortgage payments can’t leave you in the negative for the month. Find out more about qualifying for a loan modification, read our post: Do I Qualify For A Home Loan Modification?
How To Get A Loan Modification
You must complete your bank’s forms for getting a loan modification; they can be found on your bank’s website. You must complete all of them and submit them to your bank. Find out more on how to get a loan modification, read our post: How To Get A Loan Modification.
Will I Qualify If I’m Self- Employed?
If you are self-employed, there are certain stipulations to getting a loan modification that exist. There is a slightly different process on must follow; you must organize your finances in such a way that the bank approves of. To find out how to qualify for a loan modification, even if you are self-employed, read our post: Will I Qualify For A Modification If I am Self-Employed?
What Should I Do If I Can’t Qualify For A Loan Modification?
If it turns out that you can’t qualify for a loan modification or your bank has denied you countless times, then a bankruptcy may be a good alternative. A bankruptcy can help you get into a repayment plan and help eradicate debts. If you are interested in learning more about bankruptcy as an option, read our post: How Does Bankruptcy Help Save My Home In Foreclosure In New Jersey?
Why Should I Act Fast On Getting A Loan Modification?
The sooner you take action and begin the process of applying for a loan modification, the better your chances are of obtaining one. The longer you wait, the more mortgage payments are being missed. If you wait too long, the higher the new calculated monthly payments will be, and it becomes more difficult to be accepted for a loan modification. To learn more about why it is crucial to apply for a loan modification ASAP, read our post: Why Should I act Fast In Applying For A Loan Modification?