A loan modification is one of the many effective options you can look into as a foreclosure solution. This solution has its own benefits and its effectiveness is determined with how soon you make the application. Nevertheless, you need to be adamant with your lender so that your application gets approved. At loanmoddepot.com, they can help with any loan modification process doubts you may have. In addition to that, their range of loan modification attorneys will help you know the way around with the process and your lender. So, yes, a loan modification process can stop a foreclosure as long as it is approved before the pre-foreclosure period ends.
You should know that the loan modification process is a very long one and it will take at least three months or so. A loan modification is all about changing the terms of your current mortgage repayment. This can either be a decrease in payment or an adjustment with the rates. For this process, you will need to apply for the loan modification from your lender. Once you have the form, you are supposed to fill in all the details and include the required documents, such as a paycheck. Once you have done that, the lender will assess your documents and then push your application to a three months trial. After this, your application will either be approved or denied depending on the findings from the trial.
The Loan Modification Process and the Foreclosure
A foreclosure starts with the issuance of a public notice that you have defaulted. You are served with the notice during the pre-foreclosure period (3-6 months). After that comes the auction and then the post-foreclosure period. A loan modification process is viable during the pre-foreclosure period and if your application is approved before the period ends, you will be able to save your home. But remember to follow up with your application or else, the loan modification process may be granted when the auction period is kicking in.