Foreclosure Prevention with a Do It Yourself Loan Modification
If you are facing a potential foreclosure, it is best not to bury your head in the sand and pretend that the possibility of losing your home is not looming overhead. Take a proactive stance and seek out a solution that works for your situation. The sooner you begin, the better because you don’t want to overshoot the time frame that you have before the foreclosure process kicks in.
There are various foreclosure prevention solutions available and one in particular is becoming the solution of choice- loan modification programs. If you are successful in obtaining a loan modification, you will not only stave off foreclosure, but you also come away with a modified mortgage payment tailored to your particular circumstances and financial means.
While you could certainly approach your lender on your own and request a loan modification application, that route may not be the smartest, given that the roof over your head is in jeopardy. There are a number of companies offering assistance with loan modification applications, as well as do it yourself loan modification kits. With a loan modification book as your guide, you don’t have to pay a company thousands of dollars and still not have a guarantee that your application will be approved and your mortgage payment modified. Legitimate loan modification kits include a systematic guide through the application process for a loan modification. It is not just a How To guide, but also a “How Not To” guide. A do it yourself loan modification prepares you for communication with your lender throughout the arduous application process.
If you opt to proceed with a do it yourself loan modification kit, the first thing you must do is research of various do it yourself loan modification offers so that you don’t make the mistake of purchasing a kit from an unscrupulous company for an exorbitant fee. Your window of available time and depleted financial resources do not allow for such an error in judgment.
Once you have purchased your loan modification kit, the first How To step begins with writing down your expenses and income. You will need to gather documentation to prove your income, routine expenses and all debts. Do not leave out any pertinent information. Loan modification kits generally include worksheets to evaluate your financial situation.
The next step is writing the hardship letter to support your loan modification application. The hardship letter is not only important in supporting your claim of hardship, but also in convincing your lender that you are willing to do whatever is necessary to keep your home and avoid foreclosure. This includes creating a budget plan, eliminating unnecessary expenses and even taking on a second job so that you will be able to continue making your mortgage payments.
When your documentation is in order, contact your lender to apply for a loan modification. Your loan modification kit should be customized with your personal information, including the 800 number for your lender’s loss mitigation department. This ensures that you contact and speak with the right people regarding a loan modification.
You will need to exercise patience through the loan modification process. Keep in mind that your lender probably has many other applications to review. Always call at least once a week to find out the status of your loan modification application. If the lender does not return your calls, keep calling. Remain diligent and don’t give up!
You may need to speak with different people at your lender’s company. It is important, therefore, to document all communications with your lender’s representatives. Write down dates, times and names of all the people with whom you speak. Keep track of any requests for documents or information that your lender makes. Write down when you provided the requested items and information to your lender.
Assiduously following through with the How To guide of your loan modification kit will get you through the application process and, hopefully, the loan modification approval with an affordable mortgage payment and schedule to fit your circumstances. Keep in mind, however, that there is no guarantee of approval for a loan modification, regardless of whether you retain the services of a third party company to help you through the process or utilize a do it yourself loan modification kit. Taking the lead in finding a solution that prevents foreclosure of your home, however, shows the lender that you are responsible and serious about that loan modification requestand it may just be that slight edge needed for the lender to approve the loan modification application.