Looming foreclosure can be quite overwhelming for a homeowner and they may not know what to do or where to start from. If you are in such a situation, just follow the steps mentioned below.
The first step is getting help. Find a person who specializesin loan modification services and foreclosures. There are numerous government approved housing counsellors. Find one and consult themto save your home.
Strive for the best deal
Loan modification requires negotiation where the lender has the decision-making power. If you don’t think you have the best deal, hire aloan modification lawyer, or meet a person who has gone through the process of loan modification. Ask around and you will get an idea of what you should expect.
Get all your documents in order
You will be asked for your financial and tax return statements as well as payslips. Keep all the documents related to your mortgage and your property close by. Be prepared for a loan modification inspection and have a genuine reason ready for coming short on mortgage payments.
Be patient since the process will take time
The modification process is a time-consuming process. There are lots of other applicants the lender will have to look intothoroughly beforeyour application. The market where the property is located will be studied and any property sales and their value near your property will be considered. Don’t expect approval overnight and don’t be frustrated by the process.
Be up to date with the governmentpolicies
The U.S. Treasury Department and HUD release and administer various foreclosure and reduction programs. Keep yourself up to date with all these programs. The complete list of loan modification options can be found in the department’s website.
What to expect from loan modification?
Though every bank or lender is obliged to consider your loan application, they are not obliged to approve it. The final decision is totally up to them. Many appliers set up their expectations too high and are disappointed about the deals they are offered with. Have realistic expectations and get a counsel on what to expect.