How to Convince Your Lender to Offer You Loan Modification as Per Your Repayment Capacity

Financial hardships can force you to default on your home mortgage repayment. Such missed payments have the potential to drive you out of your home. Therefore, you need to take preventive measures once you feel that a financial problem is in the offing. Those who cannot afford to pay as per the agreed terms can look for many options toavoid foreclosure. Your approach towards stop foreclosure efforts must be based on what type of crisis you are in. Is it a temporary problem arising from the loss of your present job? Or is it a long term one due to losses in business, ill health, death in the family etc? If the problem is temporary, creditors may agree to offer you a repayment plan by making your loan current. The process involves signing a promissory note for the missed payment amount.

The process for avoiding foreclosure involves various steps. The first is to submit an application to the lender for remolding his loan in an affordable manner. Banks would invariably ask for several connected documents like a hardship letter which sincerely states the difficult financial position of the subject, bank statements, financial statements, credit reports, tax returns etc. It is imperative that the borrower is sincere in his declarations, lest the lender may smell a rat somewhere and would refuse to heed.

If everything goes smoothly, the borrower can expect reduced monthly installments and increased repayment period. In very rare cases, the bank can even agree to waive one or two missed payments. Less interest rates and bringing the loan to current etc can also be expected. But everything depends on your attitude and efforts. If you are late at responding to the letters of the bank regarding missed payments, the bank would keep you in the list of black sheep which may affect your efforts for a modified loan plan adversely.

You can lessen your hardship by approaching a loan modification company that has enough experience in saving homes. Loan modification services have become a developed business these days and hundreds of companies are striving for a piece of the cake. Therefore, you need to take the services of only those who offer free consultation for loan modification and a good loss mitigation team to help you in times of distress. Since it is house and your future at stake, you need to make the choice carefully. Loan modification help works for you in three ways – they would negotiate with the bank professionally, would save you unnecessary trips to the bank in search of positive results and can help you draft a superb hardship letter that can melt any.