You might have been financially stable when you purchased your home, and your mortgage may have been well within your budget. However, anything can happen to change one’s financial circumstances and render a mortgage impossible to pay. If something like this has happened to you, and you can no longer afford your mortgage, you might want to pursue a loan modification.
Here are three pieces of advice that housing counselors recommend when applying for a loan modification:
Be thorough when sharing the requested information
Your bank will ask for a lot of information to ensure you can qualify for the loan modification you need. Submit all the information requested and don’t skip anything. Just one missing document could cause unnecessary delays or result in your request being rejected.
Stay in touch with your loan servicer
Follow up with your servicer at least on a weekly basis. This will keep you in your loan servicer’s mind and prevent your modification request from dropping through the cracks.
Ask questions
If there’s anything you don’t understand about the process of seeking a loan modification, ask your servicer. You don’t want a misunderstanding to render your request invalid.
Persistence
Persistence is the reason for success in so many situations, and applying for a loan modification is no different. Stay on top of this and don’t drop the issue until you have modified your loan in a way that truly conforms with your budget.
If you’re seeking a loan modification, you need to apply a mix of patience, strategy and persistence. An understanding of real estate and mortgage law will also increase your chances of getting the modification you need.
Source: Bankrate, “Tips for getting a mortgage loan modification,” Marcie Geffner, accessed May 11, 2018