Are you having a hard time with your mortgage? Are you afraid that you are going to slip into foreclosure? Did you already receive a foreclosure notice? Here are some helpful tips.
1. Have a qualified, experienced loan modification attorney examine your mortgage contract for any potential violations. It is important to have an attorney experienced with contracts review your mortgage to see if there were any Truth in Lending violations that may help you in your loan modification negotiations.
2. Have a qualified loan modification attorney help you gather and organize all of your financial information, including: bank statements from the last year; tax returns from the last year or two; pay stubs; savings and retirement account information; and much more. Having this information organized properly will make your loan modification application easier to fill out. It will also make writing your hardship letter much easier.
3. Know Your Budget and it’s important to remember that a loan modification does not make your loan payment disappear. Your loan modification simply resets the terms and lowers your payments. You will still have to make your monthly mortgage payments on time once the loan modification goes through.
4. Save up your house payments. Usually, people stop making their house payment because they cannot afford to make the full payment. For example, if someone has an adjustable rate mortgage (or ARM) and their interest rate increases, doubling their loan payment from $1,100 to $2,200, they will stop making payments. However, this should not be taken as an invitation to just spend that $1,100. Once you get your loan modification you will have to make a larger payment, as well as subsequent payments every month. Put the mortgage money into a high-yield savings account and let that money be kept in one place accruing a little bit of interest. If it takes you four months to complete the loan modification process, you should have $4,400 plus interest waiting to be spent on keeping your home.
These are the kinds of tips a qualified loan modification attorney can inform you of. Keeping your home has to be a high priority in your life, and a qualified, experienced loan modification attorney can help you achieve that goal. Spiraling debt, bills piled high and foreclosure notices can cause fear, anxiety and even apathy. However, a loan modification attorney can help you formulate a plan to stay in your home without having to declare bankruptcy.