Loan Modification Assistance -
How to Get Your Home Loan Modified

January 19, 2009

Predatory lending practices in the past number of years have encouraged people to borrow money hoping to make that quantum leap to the top of the American Dream.

People went into debt with the idea that the real estate market would continue to appreciate. Or that that great job would always be there and next year they will get that raise.

Now those hopes have crashed. ARM’s (Adjustable Rate Mortgage) have adjusted to monthly payments that are out of reach. Property values have dropped and people find that they owe more that the house is worth. Layoffs and sicknesses have caused some to stop making payments. Homeowners feel the shadow of foreclosure and bankruptcy looming over their weary shoulders.

Investors bought fixer-upper houses, did expensive renovations that created overpriced mini-mansions. Then the palace could not sell. The question became should they sell the house to get it off their hands and lose money or should they just walk away?

News stories abound regarding lenders such as Countrywide, Wells Fargo, Wachovia, GMAC, Chase, Bank of America and others. Spotlighting the problems they are having as they are merged with each other. Some lenders are declaring bankruptcy while other attempt to stay afloat and work through the problems.

Banks and lenders are motivated to work with borrowers. Lenders do not want to foreclose and add another empty house to their portfolio. Homeowners have an opportunity to save their homes from foreclosure and prevent greater financial calamities such as bankruptcy.

Mortgage loan modification is the process of working with a lender to permanently alter the terms of a loan such as interest rate and monthly payment amounts

that are affordable.

In order to qualify for modification of your home loan, you need to have the ability to pay. A complete financial statement is required. Proof of income. Income and expenses report.

Another factor is a hardship situation. Lenders are more likely to re-negotiate if there is proof of a cause that is beyond someone’s control. Illness, divorce, separation, loss of income, death of a family member, especially a spouse or co-borrower, are legitimate reasons for a lender to modify your mortgage.

So how do you go about doing this? You could do it yourself. Do you know whom to call? What department of the bank or lender handles this? What person in the department has the authority to make changes on your loan?

Do you have time to wait on the phone trying to get through to the correct person? Do you know what to say to them when you do get through to them? Are you comfortable negotiating with difficult people? Do you know how to fill out the needed forms and loan applications? Do you know the hidden traps an experienced expert knows how to avoid? What are the tax consequences involved in modifying your mortgage.

At this point you may feel that you need a home load modification and you need a reputable loan modification specialist that can negotiate on your behalf. You have options, if you choose to pursue them. Now the next step is to contact that person and get started back to financial security.

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