If you have fallen behind on your mortgage payments, do not think you are out of options.
You have an excellent option thanks to Congress which passed a new law in 2009 which gives homeowners the ability to renegotiate their mortgage with their lender.
You can stop the foreclosure process and get dramatically lower monthly payments through this program.
Because this is a government approved qualify mortgage modification program, it of course has a lot of regulations, which is why it is so important to connect with a loan modification specialist whose job it is to take you through the process with your lender and see to it that your application is filed in a timely manner and all paperwork is sent to the lender.
Loan modification help ensures a timely and correct application.
A loan modification specialist is a professional who has worked with your lender and knows who to speak to and what information they need.
When you begin working with your specialist, the first thing they will need to work with you on is the loan modification hardship letter which explains to your lender the circumstances for your falling behind on your payments.
It is the specialists job to help you craft the letter so it meets all of the requirements for what the lender is looking for.
A poorly written letter could delay or even derail a hardship application.
Once this letter has been filed (the letter is mandatory), your specialist will now ask for you to assemble required paperwork such as pay check records, bank account statements and any medical records if a medical condition/expenses contributed to your falling behind.
Divorce records may also be required if that contributed to your situation.
The loan modification specialist can help you find documents that may be missing to help speed along the process.
Once the paperwork has been filed with the loan modification lender, they will review the application and begin negotiations with your specialist for new mortgage terms.
This is where it really pays off to have a specialist on your side advocating for you.
Your specialist will negotiate for better terms on your new mortgage so the monthly payments are now affordable to you.
They may ask for a reduced, fixed interest rate if you currently have a high adjustable rate, or they may ask for the repayment years to be extended, or they may even be able to get the principal balance reduced.
The goal is to secure you a monthly mortgage payment that is affordable, otherwise loan modification help will be pointless.
You will work with your specialist to come up with a monthly payment amount that fits in your budget.
Do not procrastinate in connecting with a loan modification specialist and starting the process.
If you wait until foreclosure has happened you will miss out on this great program and you will not be able to get a conventional mortgage again for many years until your credit rating is restored.
This process prevents your credit rating from being affected and keeps you and your family in your home.
It also benefits the bank as they do not want to go through the foreclosure process any more than you do.