This is a quick overview of some of the things you need to know if you want to work out a mortgage loan modification with your lender. If you are able to come to an agreement, you may be able to use this to keep your home and stop it from going through foreclosure.
Before you even start negotiating, you need to gather up all of your financial records. That includes proof of income for at least the past month or two, all of your paid and unpaid bills and two or three years of income tax returns. You need to be able to document both your income and expenses thoroughly.
Everything the mortgage company mails you needs to be kept in a file. That includes regular statements as well as anything related to the negotiations you are trying to do. Keep even the envelopes. You may need to prove the date something was mailed. Also keep copies of anything you send the bank, and send it certified mail. Record all of your phone calls. Sometimes the lender will try to change the agreement on you, so you need to have proof of everything that has been done.
Save up the money you would normally be paying toward your mortgage payments, even if you don’t have enough to pay the full amount. When you are finally able to reach an agreement, the lender may require a lump sum amount to start the loan modification. You could be out of luck if you no longer have the money available.
Most important of all, don’t make an agreement that doesn’t work for you. The bank will often make you an offer that actually increases your payment amount for a period of time to get you current, and then goes back to the normal payment amount. Unless you have gotten a raise since you started having trouble making ends meet, this is obviously not going to work. Keep at it until you get something that will work for you, and be prepared to walk away if no agreement can be made. Foreclosure is not the end of the world, and you may even find yourself better off if you can get yourself into a cheaper home with management rent or payments.
For assistance with loan modification contact a qualified loan modification attorney that will look out for you and your family’s best interest such as Janian and Associates.
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