A mortgage loan modification is a great tool for helping relieve mortgage debts and avoid foreclosure. However, many homeowners have found the process to be difficult and overwhelming. The problem is that your lender holds all of the power when negotiating a loan modification, but this does not mean that you cannot influence the outcome of your negotiation. It takes a little understanding about the process and few tips to maximize your chances of successfully obtaining a mortgage modification.
Putting Your Best Foot Forward
The first thing to do when considering applying for a mortgage modification is to get organized. This includes collecting all of your financial information and documents that you will need to help support your case to the lender. It is a good idea to collect financial statements, paycheck stubs and a sample of your bills. The idea is to be able to demonstrate your financial hardship but still prove your ability to financially maintain a modified mortgage payment.
Next, contact a foreclosure attorney to review your financial records to be sure that pursuing a mortgage modification is best for you. Most attorneys offer free consultation sessions that can help review the basics of your case and provide you with some guidance in the process. You may also want to consider using their services during this process, as most people find it easier to navigate the process when they have representation on their side.
Contact your lender to request the application form or necessary documents to apply for the mortgage modification. Complete all of the paperwork accurately before you talk any further with your lender. Once you have all of your financial information organized and the paperwork complete, go to your lender directly and sit down to discuss your options. It is much easier to negotiate in person than over than phone.