[This is a guest post by Peter Harper, Marketing Head & Editor Chicago, Illinois - 60607, USA
Phone : 916-745-8161
Skype name : peterharper99
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The last thing any homeowner may want is losing his home to a forced foreclosure. It is mostly seen that when a homeowner is struggling with his mortgage payments, he thinks of walking away from his mortgage loan by selling off his home through a short sale process. However, this is not the way to act in the present economic condition. Since there are ways like mortgage modification through which you can easily repay the present mortgage loan, you must take some important steps to initiate the entire process and make sure that you complete the entire process with ease. Have a look at some important steps that you must take in order to start off the home loan modification process and end it according to your needs.
1.Get in touch with a housing counselor: The first step that you need to take is to get in touch with a housing counselor who can help you initiate the process and complete it with peace. The housing counselors are all much experienced than you and therefore you can easily get help from them if you want to make sure that your efforts don’t go in vain. Even if the mortgage lender denies your home loan modification request, if it is made by the housing counselor, it may happen that they won’t deny their request. Therefore, to be sure about a positive answer, seek the help of a counselor.
2.Write a mortgage hardship letter: The next step that you must take is to craft a legally binding loan modification letter where you have to mention the reason that is keeping you from making the monthly mortgage payments on time. When you approach a lender about a home loan modification, there are some people who lie about their hardship and just want to lower their payments due to their ease. Thus, they can easily come to know whether or not you’re actually going through a financial mess.
3.You must plan the entire process: There are many reasons to go for a home loan modification and you must find the exact reason for which you want to modify your home loan. If it is an interest rate drop, you should check whether or not the mortgage lender truly takes into account all the factors that can easily let him lower the interest rate on the mortgage loan. If you have some other intention, you must negotiate in that manner with your mortgage lender.
4.Show them a budget: When you modify your home loan, if you can show them that you have a budget ready following which you can make payments towards the loan, this will be a more authentic approach towards the loan. Craft a frugal budget where you can show them how you’re planning to manage all your unsecured and secured payments just after your home loan is modified. This will build the authenticity between you and your mortgage lender.
5.Have realistic expectations from your lender: You must have some realistic expectations from your lender so that you do not expect something huge and then get disheartened. As they agree to a home loan modification, it is most likely that they will want you to pay the most that you can according to your affordability. The best way is to agree on something from which both you and the lender can benefit.
Therefore, if you’re interested in taking out a mortgage modification, you must make sure that you take the steps mentioned above in order to initiate the process and end it up successfully. Make timely payments after the loan modification so as to save your home from a foreclosure.