If you are homeowner struggling to make your mortgage payments, you face the risk of foreclosure. A mortgage loan modification is a solution that can help you stave off foreclosure and keep your home. Foreclosure is not only detrimental to homeowners but mortgage lenders as well. A foreclosure will not only be a very expensive process for the lender, but they will have to show non-performing assets on their financial statements as well. So mortgage lenders are very motivated to avoid foreclosure.
What a mortgage loan modification does is modify the terms of your loan with the goal of making mortgage payments more affordable so that you can meet your monthly payments and stay in your home. These loan modifications can include reduction in the interest rate you pay, a longer loan term, or in rare cases principal forgiveness. To qualify for a loan modification you generally must prove that you are facing financial hardship, are at least ninety days delinquent in your mortgage payments, and that you have not filed for bankruptcy.
If you are having trouble meeting your mortgage payments you should contact your lender's Loss and Mitigation department to request a mortgage loan modification application. Ask your lender what their qualifications for a mortgage loan modification are and find out what information you will need to provide on the loan modification application. Most lenders will request a hardship letter that documents your financial difficulties, proof of your income, and a budget that details your monthly expenses and demonstrates how you will be able to meet the modified loan payments.
The key to your success in obtaining a mortgage loan modification is first, understanding the loan modification process, and then providing all the documentation necessary to demonstrate that you will be able to meet your new mortgage payments. You need to write a short, persuasive hardship letter showing why you cannot meet the current payments, show proof of your income, and come up with a realistic budget that shows your expenses and how you can meet those expenses, including your mortgage payment.
If you are facing financial difficulty and having a hard time making your monthly mortgage payments, a mortgage loan modification can be a very big help. Learn everything you can about the mortgage loan modification process and gather the necessary proof and documentation you need. If you need help in documenting your income and expenses, as well as preparing a budget, you can contact a nonprofit consumer credit company service to help you. Contact your lender immediately and work towards a solution.