It goes without saying that no homeowner plans or would purposefully fall behind with their mortgage repayments and face the threat of losing their home to creditors, but unfortunately this is a situation many are facing today. Years of economic prosperity meant that people were borrowing more than they can now afford to pay back; perhaps they agreed to a mortgage with a higher than usual interest rate in order to secure the home they fell in love with. For many, being faced with foreclosure is a scary prospect: it means losing their home and often leads to other financial problems in the future. It is a misconception that if the phone calls and letters are ignored then the problem will go away. Instead homeowners should consider getting in contact with a loan modification company as soon as they feel they may begin to struggle with their repayments.
What assistance can a loan modification company provide?
There are a variety of services offered by loan modification companies to suit the needs of individual homeowners. Examples of these services include:
- Liaising with the existing mortgage company to see if there is an alternative to foreclosure.
- Do research and find out if the homeowner is eligible to apply for any of the federal funded assistance programs, like HAMP.
- They can put a stop to the threatening phone calls and letters that may be received by, allowing the homeowner to focus on getting their finances in order without the demands of creditors causing pressure.
- The most important service a loan modification company provides is support for home owners. They are familiar with the processes involved and appreciate that it is a stressful and uncertain time, and will attempt to alleviate some of this stress and worry.