If you are facing foreclosure, you have options. First you must dismiss the common myths about loan modifications:
The common myths are:
- One myth is the bank does not want me to keep my home. The bank does not earn any money if it forecloses on your home so if you are able to make the payments the lender is willing to work with you.
- Another myth is having bad credit will keep me from qualifying for the loan modification. Your credit does not preclude you from qualifying for a loan modification. Your credit score does not influence your loan modification only your ability to pay and the amount of your income influences the decision to modify your loan.
- Still yet, another myth is I am not late so I don't qualify. This statement was true at one time. However, lenders are willing to renegotiate adjustable rate mortgages to keep the home from going into foreclosure due to the homeowner's inability to pay the higher adjustable rate mortgage payment.
- Another myth is walking away and filing bankruptcy is my only option. Modifying your loan instead of walking away keeps the lender from filing a deficiency judgement against you.
- The last myth is it is too late to do a loan modification. A loan modification can be done right up to the sheriff's sale as long as you can prove you have the income and the ability to repay the loan.
Contact your lender today and asked for the loss and mitigation department to begin your re-negotiation of your loan.
In another post I answered that question What a Loan Modification .
Next you may want to read about Loan Modification with Indy Mac Is Made Simple. This post explains Indy Mac's loan modification program and how you qualify for it.