- Visit a counsellor
You need to consult a housing counsellor whenever you are not able to pay your monthly mortgage fees. With the expertise a counsellor has, he or she can assist you in coming up with a counter offer for the mortgage loan modification firm; hence making them consider your application. Since they deal with such problems on a daily basis, they will know what needs to be done and how.
In case your mortgage loan modification application has been cancelled and you have nowhere to turn to, a housing counsellor will help you solve the issue very fast. However, finding an experienced housing counsellor is an uphill task. An online search can be of great help but the problem is that not all those counsellors online are trustworthy. The only ideal way is do some research, get referrals from people and make sure you a hire a housing counsellor who will not mess you up.
- Opt for the loan workout type
If you make the right approach, you might be lucky enough to get a loan modification that will offer you lower interest rates, expended payment period and/or a forgiven debt. There are the different loan workout types:
Forbearance: this type allows you to make partial payments or even skip some payments mostly during your hardship. You can, therefore, continue with your payments after getting back on your feet. You are also able to make extra payments for the period you missed and there is room for the extension of this agreement.
Repayment Plan: here, whenever you miss a payment, you can make up for it by entering into a repayment plan with your loan modification company. The amount you missed to pay will be divided by a certain number of months. After making the complete payment, you will continue with your regular monthly payments.
- Provide the right information to the loan modification firm
Honesty is the key at this moment. Do not provide wrong information as this may compel your lender to have less faith in you. For your application to be accepted, you need the right documentation, such as proof of income, financial statement, tax returns, bank statement, and a hardship letter.
- Get yourself a financial expert
Having a housing counsellor is a good idea but go further and get yourself a financial expert since they will help you save time and keep yourself away from mistakes.