Loan Modification Q&A - Top 10 Questions Answered- Question #4 - Will a loan modification stop my foreclosure?
Yes, however you must understand that there are several factors that the bank will take into consideration before agreeing to stop the foreclosure procedure.
Let's take a closer look at so fo the factors involved:
Equity in the property - Should they consider you for a modification knowing that you have other options of satisfying your debt with them? If you've your home in the last couple of years then you will more than likely be able to proceed to the next step.
Amount Owed - The bank/lender will scrutinize the amount owed at this time and calculate your late payments, reinstantement costs, and all other fees associated with bringing you current on your mortgage. With a good understanding of how to negotiate with the lender/bank you may be able to get them to waive all fees and also have them agree to lower interest rate. Call me for more info on how to accomplish this easy task.
Hardship - You will need to provide a hand written letter (this is my suggestion) and a typed letter explaining the reasons that have caused you to become late on your mortgage payment. We will cover acceptable hardship situations on the post.
Ability to pay - If you are approved the bank wants to certain that you will not fall back on hard times and they will require you to supply them with financial documents that support your ability to pay the modified loan amount.
Future financial situation - Have you convinced them that the situation was temporary and the solution they are offering will help you stay on track?
The final factor they will deliberate on is - Does it make more sense to have the borrower sell the home via a short sale?
The goal to working with your bank/lender is to find a solution, and make sure your loan is brought up to date and the foreclosure process is terminated. If you'd like further assistance and better insight into the world of loan medications you can contact me at any time directly at 646-294-2561 or email me at ProRealtor@verizon.net
If you missed the previous article Question #3 - Can anyone qualify for a loan modification? click here
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Disclaimer: The above Real Estate information was provided by Vincent Martinez, Realtor for the #1 Real Estate offices in New York and the #4 office in the USA. Vincent Martinez is a Certified Realtor Short Sale Professional by the Long Island Board of Realtors (L.I.B.O.R.) and a member of Prudential Douglas Elliman - Licensed Real Estate Broker. Vincent Martinez does not guarantee or is any way responsible for the accuracy of the information in this blog post and information provided is without warranties of any kind, either express or implied. Information here represents the opinions and ideas of the author; comments by others may not express the views of the author. Copyright © 2008 By Vincent Martinez, Loan Modification Q&A - Top 10 Questions Answered- Question #4 - Will a loan modification stop my foreclosure? All Rights Reserved.
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