Successful Mortgage Modifications

April 5, 2012 by  Filed under: Loans 

Homeowners in need of help with lowering their mortgage payments or resolving debts often look to loan modifications. However, not all lenders are forthcoming with these offers and many people have been denied a modification. While securing a modification isn’t always easy, there are a few tips that can help boost your chances at successfully obtaining a mortgage modification.

Apply Early

A common misconception among mortgage relief companies is that a strategic default can put you on the fast track to help with mortgage debts. Although the jury is still out on the truth of this statement, it is generally recommended to avoid defaulting on your mortgage, especially on purpose. In fact, research has shown that contacting your lender about a financial hardship and your need for help before missing a payment is often more effective than waiting until your account is delinquent. Not only may you end up in foreclosure after a single missed payment, many lenders may view you as a borrowing risk. The bottom line is: get in contact with your lender at the first sign of trouble and apply for a mortgage debt solution right away. Time is of the essence and seeking for help quickly can be the difference in a mortgage modification approval or ending up without options.

Know Your Plan

One mistake people often make when attempting to negotiate a mortgage debt solution with their lender is failure to prepare. With so many options on the table, many borrowers simply don’t take the time to fully review their options. Assuming the lender will be honest about what they can offer, people wait for their lender to take action and could be missing out on some potential help. It is important that you understand the options available to you and how they can help your financial situation. For example, you may want to request a temporary suspension in interest rate or payments as your modification of choice if you only require help for a short period of time. If your financial hardship is expected to last a bit longer, you may want to consider asking for an extended loan term to lower your payments indefinitely.

Find Other Help

Remember that your lender isn’t always going to be eager to help you lower payments, it costs them money. Although they hold the power of approval in mortgage debt negotiations, you still have options. If you haven’t been able to find the help you are looking for with your lender directly, or they have denied you a modification, try seeking help through the government programs for homeowners. The Home Affordable Modification Program was designed to help qualify homeowners and open up options for those who are having trouble securing a deal with lenders.

Christopher understands that financial hardships can affect honest, hard-working people. Growing up in a very blue collar family and rural area of Indiana, money didn’t always come easy for his parents. The struggles his family faced in his childhood made a significant impression on his business philosophy today. As a Fort Worth foreclosure attorney his practice has given him the opportunity to help many people save their homes from foreclosure.

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