Four Things To Know About Mortgage Modifications
A mortgage modification is a way for homeowners to lower their house payment, and free up disposable income each month. The way it works is that the current home loan lender rewrites the loan, lowering the interest rate and giving you a lower payment. But the process can be complicated, and many homeowners become frustrated along the way and allow their lender to delay or stop the process short of doing a full modification. These possibilities make it critical to seek help when trying to modify your mortgage, so you are not taken advantage of and so that you can get to the end result you envisioned when starting to go through the procedure.
Four things to know about how mortgage modifications work and what you can expect when filling out an application are:
- Your lender will ask for proof of income, and proof of financial hardship. Be prepared to provide these documents and also be prepared to keep copies and track delivery of what you have sent to your lender. It is always a good idea to send things by certified or overnight mail so you have proof of delivery.
- Tracking delivery of documents you send your lender becomes necessary because many lenders ask for resubmission of things that have been previously provided. When you are able to prove delivery, you will be able to avoid spinning your wheels.
- Temporary modifications are common, which require you to make a set number of payments under the proposed modification before the lender will make a final modification. The reasoning behind a trial modification period is so the lender is provided assurances you are capable of making the new payment.
- Having an attorney present your application and negotiate on your behalf may get you faster results, and allow you to avoid the run around.
If a mortgage modification does not offer you the relief you need, you should also give filing bankruptcy a thought. Bankruptcy will either eliminate or reduce your debts, including both secured and unsecured obligations. So, if you need more relief than can be obtained by lowering our house payment, bankruptcy will give you that relief.
For more information about how to get out of debt by modifying your mortgage, filing bankruptcy, or a combination, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.