Make 2010 The Year You Avoid Foreclosure
Many people assume if you have a mortgage which has monthly payments you can no longer afford, you are out of luck. Not true. There is a program enacted by Congress in 2009 which gives homeowners the ability to modify their mortgage terms and avoid foreclosure. This program is called a Hardship Loan Modification, and it allows you to change the terms of your mortgage with your lender to a payment you can afford. Your past due mortgage is ripped up, a new one is drawn up with the same lender, and you start fresh while clearing up any past due payments or foreclosure proceedings.
When Congress passed the new laws which created the hardship loan modification program, it was in reaction to the startling rise in foreclosures. Congress realized many people had mortgages that contained high adjustable rates that were making payments almost impossible to keep up. That was the force behind the legislation, it enabled people to stay in their homes, and prevent foreclosure and the ruin of thousands of homeowners credit.
How does the program work? If you are a homeowner who wants to change your mortgage terms, the best way to start is to first connect with a professional who has been through this process dozens of times already. Much like a real estate agent who handles all of the paperwork and negotiations when you buy a home, a foreclosure prevention specialist (or loan modification specialist) will fill out your modification application, make sure all of the required paperwork has been filed, and then negotiate for the absolute best new mortgage terms for you.
The foreclosure prevention specialist will first file what is called the loan modification hardship letter which details what circumstances caused your difficulty. This letter has to contain certain information and must be filed with the proper authorities at your loan modification lender, who then determines your loan modification eligibility. All of this will be handled by your specialist, you simply need to give them paperwork as they ask for it such as bank statements or pay stubs.
Once the loan modification hardship letter has been filed, and all paperwork has been submitted, the most important step must take place, which is negotiations with your lender for a new mortgage. Here is where it is crucial to have a professional on your side who has been through these negotiations before. You will not need to spend hours on the phone with your lender asking to speak to the proper person to negotiate with, they will handle the discussions and work to get you the best terms you can afford.
You will need to work with your specialist to come up with a monthly figure you can afford moving forward so they know what to ask for in negotiations. This is important as you only get one shot with this program so please consider what amount you can safely afford going forward. Once you have determined what monthly payment you can afford, they will work to get this new amount in your new mortgage.
If you have fallen behind in your mortgage, do not delay, as you do have a great option you may not have known about that can keep you in your home and prevent foreclosure. If you delay and allow the foreclosure process to complete, you will lose your home, damage your credit for years to come, and not qualify for a conventional mortgage again for many years. The loan modification help program prevents all of that from happening but you must act now.
Start the process now. Click Here to connect with a loan modification specialist
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