subject: Follow These Steps When Modifying Your Mortgage Loan [print this page] It is pretty evident that mortgage repayment percentages are reducing day by day. Lenders have started accepting Home Loan modifications. You must first know what a mortgage loan modification means and the necessary steps that you have to take to successfully obtain a mortgage modification. When you are not able to pay your loan properly, due to certain reasons like being in a bind with some other important financial commitment, you may be forced into a situation where you have no other alternatives to finance your monthly installments.
In such cases you can talk to your current lender about your problem and explain your difficulties and lack of alternate sources. The lender may agree to negotiate and workout a new arrangement for you. They will do this by reducing the interest rate, changing the repayment term length of the loan agreement, or reducing your monthly installment. This process is called Mortgage Modification.
Try to understand the difficulties first. Understanding the difficulties clearly will make it easier to approach your lender and give you much needed confidence. First of all, know thatmortgagees have appointed representatives to talk to you about your issues and to collect details from you and, as far as possible, to declare your application as fit or unfit. These people are paid by the lending companies and they are professionally qualified to handle such negotiations. Your job is to satisfy them with enough proof and other supporting documents to qualify for a mortgage modification.
Certain important procedures to follow:
1. Keep all your correspondences safe. Incoming correspondence you receive from the lender and proof of your outgoing correspondence to the lender should be logged. Even envelopes with proper date and a postal seal may come to your aid at the proper moment.
2. Be prepared to talk and negotiate with the lender's representative boldly by showing all evidence and proof of your current financial situation and ability to pay the modified mortgage. Make sure you keep all documents in your file.
3. Have a copy of your complete income and expenses account. Add monthly bills, medical, credit cards, other loan payments, automobile repayments and the last six months' bank statements and tax returns from the past 2 or 3 years.
4. The most important document is the document showing the reasons for your financial struggles, maybe something medical, household or child-related. Keep this document as the primary evidence for negotiation.
Finally, to conclude, keep a separate set of documents of proof of your current income from all relevant sources to prove to your lender that you will be capable of repaying your mortgage debts. By obtaining a mortgage loan modification, you will definitely lower you monthly payments. A Home Loan modification may be the solution that you have been searching for.
by: Jason Witts
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