Factors That Influence A Mortgage Modification
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Filed under: Mortgage Modification
A mortgage modification can be a great tool to help relieve your mortgage debt troubles and avoid foreclosure. However, there are a few factors that influence your chances of successfully obtaining a mortgage modification that is beneficial to you.
Your Lender
It is important to remember that your lender is the only one who can approve a mortgage modification, which means that they are the key to your success. Some people will suggest negotiating with your lender or “playing hardball”, which may not always result in a successful modification agreement.
You have the best chance of successfully navigating the modification process if you come to your lender with a proposed plan and allow for changes to be made by the lender. In other words, ask for more than you want or need and be willing to accept a little less. The lender wants to feel like they won and are getting the most from you, so be prepared to get what you need but be flexible.
Your Finances
When negotiating a mortgage modification with your lender it is imperative that you demonstrate your financial need for the modification. You may want to provide proof of reduced income or increased expenses in order to demonstrate your need for a reduced mortgage payment. If you have experienced an illness or medical condition that is costing you lots of money in medical bills, show your lender why you are in financial need.
However, remember that a lender is only willing to work with those who can provide and maintain a consistent monthly payment. This means that you need to prove financial hardship while also demonstrating your ability to make enough steady income to cover your payments.