Tips For Home Loan Modification
Loan modification is emerging as the number one option for avoiding foreclosure of the house. Most of the homeowners go through some or the other kind of financial hardships and they also have their homes mortgaged with a lender. In such a case, instead of simply allowing a foreclosure of your house or selling it off for an undeserving price, you can chose to go for loan modification on your home mortgage. Though it is a safer option, average citizens need to understand a few things before they move forward. Here are the tips that you must consider if you want everything to go smoothly.
- Act Now! = don’t wait for other doors to close. Simply act on what is the safest and surest method of avoiding a foreclosure of your house. You need to file an application to the lender and also arrange various documents that would strengthen your case and help you in achieving your target sooner.
- Always seek professional help- in most of the cases, the clauses and terms of a loan agreement are beyond the understanding on non-legal people. Therefore, as an average householder, you must first contact a mortgage modification attorney and let them have a look at your older loan agreement. It is possible that there are clauses regarding loan modification there. In any case, your attorney would be able to tell you which clauses will be better modified as per your situation.
- Learn to write good hardship letters- When you are writing cover letter or a hardship letter to the lender, make sure that you use the correct words and make the hardship clear to the lender. Do not make him believe that you are unable to repay the loan or that you are some sweet damsel in distress. In such a situation, your case becomes weak. Just let them know that you are going through a financial crisis and it would not be possible for you to repay the loan on the older terms. Keep it simple and short
- Document your case- you need to keep a record of all the communication that you had with the lenders. It is quite possible that something goes wrong and the lender sends you a foreclosure notice. In such a case, you will easily be able to go to the attorney, build a very strong case about your hardships and save your house.