Do It Yourself Loan Modification
As the foreclosure rate rises drastically, millions of Americans are facing the misfortune of losing their homes. We are committed to helping homeowners find alternatives to foreclosure. No matter how severe your situation is, there might still be time to avoid this.
This modification kit will organize your financial information into an easy-to-read format for your lender’s review. It is important that you disclose all details pertaining to your present circumstances and supply the documents that verify those details. It is also important that you are very specific in your Hardship Letter, as to what the circumstances are that caused your financial challenges, and how that is changing. Many loan modifications are for a period of time, 1-5 years, so the lender wants to see that there is going to be the ability to pay a higher payment in the future.
Once everything is complete and submitted to your lender, be sure to call them to ensure they received all your information and are working on your file. Contacting the lender on a weekly basis is the best way to make sure things are moving forward. Be prepared to resend the documents a few times, as it is not unusual for the lender to lose documents within their system.
Options to Understand
A Loan Modification is an agreement by your lender to modify your existing mortgage terms; by either reducing the loan balance (this rarely, if ever happens), payment or interest rate, and/or by fixing your adjustable rate.
A Short Sale is an agreement by which the lender agrees to accept a payoff amount that is less than what is actually owed on the loan. As such, you cannot receive and proceeds and the lender pays all the costs of sale, including the real estate commissions, escrow and title fees, as well as some of the buyer’s closing costs in some cases. Once we have listed the property and obtained a Purchase Agreement, we begin the negotiations with your lender(s).