Many clients that I have worked with of late, want to keep their homes. A loan modification is something that may be an option to them and a way to prevent foreclosure. I always try to make sure that they know all of their options including short sales and loan modifications. Here are a few tips that I have discovered about loan modifications, from working with my sister company Equity Negotiations.
Is this best for my situation?
1.) To qualify for a loan modification you will need to show a hardship in your income. Hardships include: Job loss, wage/ hour reductions, extensive medical bills, divorce, and death.
2.) The income that you do have will need to be able to sustain a modified payment. Lets face it, the banks are willing to work with you BUT they are not going to let you live in your home for free.
3.) Modifications are wide spread, most are customized for the individual and their situation. If your income change is temporary, your lender may offer you a repayment program. Interest rates, principle reductions, special arms, are all possibilities that lenders are exploring . The modifications can be as short as a few months or as long as several years.
4.) You can negotiate this yourself: Most lenders have their contact information online, or available to you by a mailing packet you can request. Most of our clients come to us because they have difficulty reaching their lender, collecting the necessary paperwork, or are unsure of how the process works and would like assistance with the entire process from start to finish. Often our staff can easily have 10+ hours of phone hold time just trying to get the correct information to the lenders to start the process!!
5.) If you have had a permanent change in your income, and cannot support a reasonable mortgage payment, you may need to look at Short Selling your home. This option is better than foreclosure because it offers a faster opportunity to correct the damage to your credit and allow you to show your willingness to cooperate with lending institutions in the future.
6.) I'm still not sure: If you have questions about loan modifications, please feel free to call our help line at 540-450-8705 to speak with our staff. Or send us an email: email@example.com