For most, being faced with the possibility of losing their home is a scary prospect. Some people may have missed a few monthly payments, or they may have already received notification that their lender wishes to begin foreclosure proceedings. Whilst this is a deeply stressful time, homeowners should remember that they have options, and there is help available for those that take the initiative to find it.
Some examples of help available to homeowners:
- A loan modification: A loan modification is a program whereby the lender and the homeowner come to an agreement to change the terms of the mortgage, or begin a new mortgage altogether with reduced interest rates or lower monthly repayments.
- A loan modification company: There are many companies who specialise in assisting homeowners get approved for a loan modification. They will often work in conjunction with a loan modification attorney to ensure that the application process runs smoothly and this in turn increases the chance of the homeowner being approved. They can help with explaining the process, completing paperwork, and ensuring everything is submitted by required dates.
- The mortgage provider: Many people do not consider the option of contacting their lender for a modification. Depending on circumstances, this may not be the best option for everyone, but it is worth making the lender aware of the situation and they may be able to come up with a solution.
- Government supported programs: There are a number of approved programs to help homeowners, the most common is HAMP. This program provides incentive for lenders to approve modifications as well as supporting the homeowner to ensure they get the best help and the solution will be beneficial in the long term. It is not easy but definitely worth consideration.