A Little Knowledge Goes a Long Way in Mortgage Modification

You may have hit some financially hard times. Not surprising in the recessionary economy of today. Hopefully, you have been keeping track of your finances, or the lack thereof, to understand that you need some changes in your mortgage if you are going to remain in possession of your home. Understand, no amount of bending over backwards is shameful to keep your property. You need to examine the process of home loan modification so you will know what to do and what to expect.PreparationBefore you approach your lender with a loan modification proposal, you need to have all your ducks in a row. Do not skimp on gathering the documentation or paperwork needed to advance your cause. If you have experienced a hit on your income, bring the proof. It may even work to your advantage to show your loan officer that you are a victim of bad times, bad luck, or unforeseen circumstances.ConfidenceDo not be intimidated by the loan modification process. Keep in mind that your lender has plenty of incentive to keep you on the property as a solid loan payer. The lender would rather be getting some money from you than being saddled with a piece of property that they are going to have to struggle to sell at an even greater loss. They may not tell you that there are government incentives that they can receive if your situation meets certain qualifications. The plain and simple truth is, times being what they are, lenders are more willing than ever to work with folks having trouble making the mortgage.AbilityThe loan modification process is meaningless if you will not have the ability to meet the new obligations, however much reduced, that you have negotiated. So you have to demonstrate the ability to meet the new set of obligations. Bring any documentation to the negotiating table that proves you can pay. Since you may not be bringing home as much bacon as you have in the past, show that it is enough to cover your new obligation. Also, lenders, now more than ever, are negotiating with many folks on the brink of foreclosure or bankruptcy. Be creative, do whatever you can to convince the lender of your earnesty and ability to help them help you.TargetsWhen you approach a lender with your plea for modification, you must focus on a few matters that will mean much regarding your ability to stay in your home. They are: A longer duration for your loan. A reduction in interest. Forgiveness of accumulated late fees or penalties. Missed payments should be forgiven or rolled over into the new contract. Seek better terms in general.HomeownerYour goal is to remain a homeowner. Focus on the amount you will be saving over the length of the loan and how much easier it will be to meet the new obligations on a monthly basis. Do not put off seeking modification; the sooner you ask when you foresee trouble, the better off you will be. When you are sitting comfortably in your home once again, you will be glad you took the necessary steps to modify your loan.