Home Loan Modification - Mortgage Modification Process
Are you in the Mortgage Modification Process or thinking of applying for one
? Loan modifications can be both time consuming and confusing. Here are some things to keep in mind if you are in the process or are considering a loan modification.
Mortgage modifications take time
Normally, it can take between 30 to 90 days for the process to be complete. Don't lose heart, but be aware that it can take months before you hear back from your banker, credit union, or lender. You should ask when your paperwork is likely to be completed and mark that date on your calendar. This is helpful as a reminder if you start to panic when you have not heard from your lender as well as knowing when you should call to check on your the processing of your loan mod. Despite the time it takes, you will not be charged late fees; however, this will not stop the lender from calling or sending you delinquent notices.
Don't be alarmed
The federal government has mandated that lenders waive late fees and penalties when going through the process. Just remind the lender representatives, when they get in touch with you, that you do not and will not owe late fees. It's a good idea to log any correspondence and phone calls between you and your lenders. This is a safety precaution, and you don't need to transcribe the conversations, but do write down the general idea and tone. Now is also a good time to check out other possibilities if the loan modification process does not go through. These months can be key to getting your house ready to sale if it becomes necessary.
Does everyone qualify for Mortgage modification?
You need to prove that you can make the modified payments both now and in the future. To do that you will need to provide proof of your employment and/or a current financial statement. Next, you will need to show financial hardship - for example, a lower income or more expenses. Each homeowner's financial situation will be different, but the loss of a spouse, loss of a job, divorce, illness, or military service is usually qualification for a load modification.
Getting started is easy
Take the time to get the documents you need, a financial statement, proof of hardship, hardship letter lender statements, bank statements, etc. Contact your bank or loan officer to start the process. If you are intimidated by paperwork or lenders, you can pay someone to represent you in this matter. Be sure you keep copies of all statements and make certain to read everything before signing.
The Mortgage Modification Process can work for you, but make sure you do your homework and keep in mind that not everyone will qualify. Do your part to keep track of the process, be informed, and make sure you explore all your options.
by: Jason Witts
Mortgage Loan Modification Tips - 6 Tips For Negotiating Modification Terms Follow These Steps When Modifying Your Mortgage Loan Your Leftovers Use Them And Save Money Why You Should Buy A Slow Cooker Online Savings For Women Who Life To Save Money! Some Things To Note In A Home Building Plan Gold Speculation And Trading Insolvency And The Direct Risks For Directors Pushing Beyond The Limit Insolvency And The Futility Of Persistence Hunting Insolvency And The Time Factor In Effective Decision Making For The Bride To Be Making Children Learn For The Past So Many Years The Spokesperson Of The Fashion Industry