If you are falling behind on your monthly mortgage payments a loan modification agreement may be just what you need to get yourself back on track and avoid foreclosure. A loan modification agreement will modify the terms of your mortgage loan by lowering the interest rate, extending the length of the loan, or providing some form of principal forbearance or forgiveness. The goal is to make your monthly payments more affordable.
Loan modification agreements have become more and more common. Foreclosures are very costly for lenders and the federal government is also strongly encouraging lenders to offer loan modification agreements to help stem the tide of foreclosures which have swept the country. So bear this in mind when attempting to qualify for a loan modification agreement. It is in everyone's best interest for you to stay in your home and make monthly payments rather than you losing your house to foreclosure.
To successfully negotiate a loan modification agreement you will need to become familiar with all aspects of the loan modification process. You will need to provide your lender with the necessary documentation to show your income and expenses, as well as present a persuasive case to show why you are a good candidate for a loan modification.
You can either hire a loan modification company to help you prepare your case and negotiate with your lender on your behalf, or you can contact your lender directly and negotiate your own loan modification agreement. The advantage to hiring a loan modification company to help you is that you will have a specialist preparing the necessary documentation and negotiating on your behalf. The disadvantage is that it can be quite expensive and may require a substantial upfront fee. You also will need to thoroughly investigate any company you are considering to make sure they possess the necessary licenses, are in compliance with mortgage laws, and have the appropriate experience to successfully negotiate on your behalf.
The advantage to negotiating your own loan modification agreement is that you will save on the costs of hiring a specialist. However, you will then need to become thoroughly familiar with the entire loan modification process yourself and must be able to successfully present your case and provide all the necessary financial documentation that your lender requires.
Whether you hire a firm to help you or decide to negotiate a loan modification agreement on your own, the time, effort and money spent are well worth it. A loan modification agreement can really help you get financially back on track and save you from losing your home.