One of the most frequently asked questions by struggling homeowners in today’s economic crisis is ” how to stop foreclosure?” With the national unemployment rate still at 10%, millions of Americans across the country are finding it very difficult to manage their monthly mortgage payments. Whether you are in the construction or mortgage field it does not matter, work is just not there for many individuals. Other than work other factors such as subprime mortgages have caused a mass wave of foreclosures to sweep the nation.
The hands-down best way for an individual to prevent foreclosure from taking place is through a loan modification. Whether this is referred to as a loan modification, loan workout, or loan restructuring, they are all one in the same. With this type of assistance the lender will work with the borrower to help bring their account current and possibly even lower their current mortgage payments as well. First of all to qualify for this type of assistance you must be able to prove that you have a current financial hardship that is making it difficult for you to manage your payments. This will need to be explained in detail in the hardship letter you will provide as part of the submission package to your lender. With a loan modification you may be able to lower the interest rate, turn an ARM loan into a fixed rate, and possibly have the loan extended out to 40yrs to help keep your monthly payments as low as possible.
Many people are not aware, but there are actually non-profit loan modification companies that show excellent results. This is probably one reason why so many people get suckered into loan modification companies that are really just a scam. The FTC has been heavily involved shutting these unscrupulous firms down, and they have been warning consumers to stay away from these companies which are charging their clients an up-front fee before the services are performed. These companies target homeowners that are going through foreclosure or have had a Notice of Default recorded with the county. Please folks do not be convinced by anyone claiming they guarantee you will achieve a loan modification. Two real firms that are legitimate for consumers to trust are called Neighborhood Assistance Corporation of America and HOPE NOW. Both have showed great results and develop good relationships with their clients.
For a full view on this article, read more information at LoanSafe.org
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