If you are behind on your mortgage payments, or just having a hard time making your house payment each month, you might be a candidate for a mortgage loan modification. The way it works is that your mortgage loan is rewritten, to more favorable terms. The term modified the most often is typically the interest rate, and once your rate is lower so are your payments. There are a lot of ways to go about getting a modification of your mortgage loan, but one of the most popular is to ask your current mortgage lender for help.
A mortgage can be modified by the current holder under certain circumstances, but you do have to follow a few rules to get there. Some of these rules include:
• Filling out an application for a modification, which your current lender can provide to you upon request.
• Providing proof of your income, which can be done by providing the most recent paystubs from your employer, a W2, or a copy of your most recent tax return.
• Attending a new closing, where you will sign a new mortgage. The new mortgage will take the place of your existing mortgage and you will be bound by the repayment terms contained in the new mortgage.
When you initially bought your home you also had to have an appraisal and an inspection done. However, when you are asking the lender to modify the existing mortgage, these requirements do not have to be met. This can save considerable time and expense, and can help you get to a new mortgage payment faster. And if you don’t qualify for a modification, don’t worry, there are other alternatives available to you to make paying for your house easier. One option is to consider filing for bankruptcy. In a bankruptcy you can eliminate or reduce some of your unsecured debt, making it easier to pay your mortgage and even some of your other bills. You might also be allowed to pay the back due mortgage payments out over time rather than all at once, depending on what type of bankruptcy case you file.
For more information about how to handle overwhelming debt, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.