Sunday, November 1, 2009

Lower Your Mortgage Payment With a Loan Modification

Debt consolidation and debt settlement are both great ways for lowering unsecured debt payments. But since your mortgage is probably your highest monthly payment, it makes sense to get it lowered as well. This is easily accomplished with a Loan Modification.

A loan modification is when your lender permanently reduces the mortgage payment by lowering your interest rate, reducing the balance, and/or lengthening the term of the mortgage. This process can drastically reduce your payment and has helped 1000’s of people avoid foreclosure.

Although most lenders will force you to miss payments before approving a loan modification, it’s not always necessary. Even if you are current on your mortgage, a loan modification is possible. You just need to prove you’ve experienced a hardship and that lowering the payment is necessary for you to continue making timely payments.

If you are facing foreclosure, or if you would like to get a loan modification, the first step is to contact your lender and ask for help. In some cases, you can get a loan modification approved on your own, by simply talking to your lender. But more often than not, you will need to hire a professional to negotiate on your behalf. By hiring a professional, you will ensure that your loan modification has the best chance of approval.

When searching for a professional, we recommend finding a company that does not charge large up-front fees and has been in business at least 5 years, with a good track record. It’s important to avoid new companies or people who charge large up-front fees.

Remember these tips when trying to get a loan modification:
  1. Always submit a complete package, including all proof of income or other supporting documents.
  2. Don’t wait until the last minute to take action! A loan modification can take several months to complete, so take acting quickly will help you prevent foreclosure.
  3. If a representative at your lender is not cooperative, try calling back to speak with someone else who may be more helpful.
  4. Never become angry or rude with the representative. You need their help with the modification, so treat them with respect.
  5. Follow up as much as possible. You will need to verify all faxes and continually contact your lender to make sure the loan modification stays on track.

If you have had a financial hardship that reduced your income, then you may qualify for a loan modification. Take action today and contact your lender to begin your modification.

3 comments:

Mark said...

A Mortgage leads is a long-term financial commitment and you have to maintain the monthly repayments for the full duration of the mortgage. That's going to be over many years but non of us have the benefit of a crystal ball – so no one knows how your circumstances are going to change. So that must represent a big risk. Mortgage Payment Protection Insurance (MPPI) is just one of a range of valuable insurances which includes critical illness insurance and life insurance, which you can use to reduce that risk and protect your family's finances.

mortgage said...

Thanks for the info

foreclosure freeze said...

The beauty of the topic kept me reading till it ended. It happens only for a few times in a month that i read everything in an article. I admire your vision and the effort to explain foreclosures. Kindly do come up with topics like foreclosure fraud and foreclosure freeze.
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