Loan Modification Process – 3 Options to Avoid Foreclosure

If you are having financial hardship and you’re no longer able to consistently meet your financial obligations towards the payments of your mortgage loan, a foreclosure may be around the corner. However, there is a way out of this – getting a mortgage loan modification. With a loan modification, you’ll be able to reduce your mortgage payments and save your home. Below are three steps you can take to avoid a foreclosure.

Ask for help

The first thing you will do once you will realize you’re having problems in meeting your payment obligations is to contact your loan servicer or lender and ask for a mortgage modification. The company will take you to their loss mitigation unit. It’s also good to seek loan modification help from an expert who would advise you on the best way to go.  When contacting a loan modification consultant, be careful not to fall victim to scammers who would seek an upfront payment to help you out with your application.

Meet the lender’s requirements by submitting the necessary documents

The loss mitigation department will request certain files to show your unique circumstances that have prevented you from paying your mortgage loan. These documents will be used to assess whether you will be qualified for a loan modification. The company will also want to know if you’ll be able to make payments for the new loan plan if approved. This will serve as a basis for either accepting or rejecting your application.

Stay in touch

After your documents have been submitted, most servicers usually will attach you with a single point of contact. This person will guide you throughout the entire loan modification process. It’s important to keep in touch with your point of contact and communicate to them whenever you have any issues or updates regarding your financial status. Your proper communication with him will help speed up your application process.

Conclusion

The loan modification process can be a difficult process requiring lots of paperwork and constant visits to the mortgage company. It will be sad if all these things are done and at the end, the borrower’s application still gets rejected. This is why it’s important to strictly adhere to the lending company’s terms and provide the necessary documents.