We’re all experiencing hard times. The economy went down the
drain and most of us can’t afford to pay our bills nor our homes. Credit card
companies tightening up their regulations and so mortgage companies, so we
can’t fix an adjustable interest rate to get a more affordable mortgage
payment. Also some of us are loosing their jobs on top of it, so how we can
change it?
First of all I personally think that we can change it by
being strong and patient. Of course being patient and strong will not put money
in your pockets, but it will definitely keep your health and your hope in
order. You have to understand that probably 90% of the population in
America
and the whole world is experiencing the same problems as you do.
So what is loan modification?
While you’re struggling to make your mortgage payments due
to economic changes, the banks and the government developed programs that can
help you. The government has many reasons to help homeowners, some of the
reasons are:
- Try to
stabilize the economy so it will not crush completely.
- Banks
approved so many bad home loans.
- Greed
in Wall Street, as well as bank ceo’s and owners.
- Government
couldn’t oversee financial crash
- Innocent
and not innocent homeowners that took loans they couldn’t afford from the
beginning.
Ok now back to the loan modification process, what is loan
modification? Loan Modification is a adjustment of an existing mortgage a
homeowner have, it can be with a government loan or a bank loan. Let’s say you
had a 6% interest rate on your mortgage that was matured and now the interest
rate have changed to 7%. Now it’s harder for you to make the payment due to
increase in the payments and the fact that your job don’t pay you the same as
before. This is a perfect example of an average homeowner in
America
today. So what do you do?
There are two different ways you can go with. You can do it
your self or higher a professional mortgage modification broker to do it for
you. Let’s assume for a second you do this your self, what are the steps to do
it your self?
- You
contact your bank
- You
will ask for the loss mitigation or collection department.
- Give
them a brief of your financial background today- expenses and income.
- Write
a hardship letter. You basically tell them in the letter why you can’t
make the payments.
- They
would want to see also some bank statements or pay stubs.
After talking to you on the phone they will process
everything you’ve submitted to them. They want to make sure that this time if
they will lower your interest rate and make some adjustments for you, if you
could make the payments in order without defaulting on the loan. This process
is almost as qualifying for any loan, so you need to know how to qualify your
self with no mistakes. I would definitely recommend hiring a professional to do
this for you, since they know the market and how to make things happen to you
in a legitimate way of course.
The process of a loan modification approximately can take up
to 3 months, but it’s definitely worth it. You can get a much better interest
rate on your mortgage and some banks can also reduce your principle. That’s
right, you can also lower what you owe on your property, but you will need a
very good reason to do that.
There are some mortgage companies and law firms that help
homeowners and real estate investors with loan modification. I think that you
definitely need to contact a professional do this for you. Be careful from scam
artists, because for this service you normally need to pay up front and there
are many people out there that will take your money and will not deliver what
they’ve promised.
Good Luck.
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