4 Tips for Seeking a Mortgage Loan Modification

 Posted on April 21, 2020 in Loan Modification

You did not plan to fall behind on your mortgage. In fact, when you bought your home (or refinanced), you probably assumed that you would have more than enough income to make your payments each month. Unfortunately, things do not always go according to plan, and suddenly, you might now be several months behind and facing the possibility of foreclosure.

The good news is that if your lender has not initiated foreclosure proceedings yet, you have a number of options that could keep you in your home. Once the proceedings have begun, you will probably have fewer options, but some almost certainly still exist. Depending on your situation, your best bet may be to seek a mortgage loan modification.

Know Your Options

If you are like most homeowners, speaking with your lender about modifying your mortgage loan may be extremely intimidating. While laws have been passed and programs have been introduced to help struggling homeowners, the reality is that your lender holds most of the cards when it comes to the terms of a modification. There are, however, some ways to help the process go smoothly.

In order to obtain the best possible outcome, you should:

Tip #1: Be Certain of Who Owns Your Mortgage.

There is a very good chance that the bank that provided your original loan no longer owns it. Loans are commonly sold and split among other institutions, often without the borrower being aware. To make things even more confusing, the company servicing your loan might not be the company that owns it. You can find out who owns it by asking your servicer directly.

Tip #2: Ask About In-House Programs.

Many financial institutions have set up programs to help borrowers who have fallen on hard times. You might qualify for one of these programs simply by asking about them. Be sure to get information on all of the available programs before you get locked into another arrangement that you cannot afford.

Tip #3: Be Honest and Concise.

Most modification programs require you to submit documentation about your financial situation, as well as a hardship letter explaining your circumstances. The best thing you can do is to be open and honest, but keep things simple. If your hours were cut at work, say that. If it was a combination of factors, briefly explain them. It is also important to be truthful about your finances. Do not understate your current assets or try to make the situation sound worse than it really is.

Tip #4: Hire an Experienced Attorney.

 Your lender, like most banks, probably has a team of attorneys working full-time to protect its interests. They also draft all of the forms and contracts that you will be asked to sign. This puts your lender at a distinct advantage in any negotiations regarding a modification. When you put a skilled lawyer on your side, you can ensure that your best interests are being safeguarded.

Contact a Libertyville Loan Modification Lawyer

Obtaining a modification of a mortgage loan is a complex process, and it is not a good idea to try to manage the process on your own. If you are in need of a loan modification, contact an experienced Lake County mortgage modification attorney at Newland & Newland, L.L.P. today. Call 847-549-0000 to schedule your free consultation and case review. We will work hard to get you the second chance you deserve.

Sources:

https://homeguides.sfgate.com/negotiate-home-loan-modification-63344.html

https://www.fool.com/millionacres/real-estate-financing/articles/how-request-loan-modification/