Loan Modification - Help For Hard Times

Author : Ryan A. Harris

Loan Modification is not a new option for those in a financial hardship situation, but lately it has become much more wide-spread. This is due to President Obama's Making Home Affordable Plan. With the signing of his program, it has become easier to obtain one of these reworked mortgages. You should definitely look into this program.

Don't delay looking into this federal program, especially if you are having financial hardship. Be proactive and find out your options while you still have some! There are agencies approved by HUD (Housing and Urban Development) that are good places to go to receive financial counseling. There are also fee-based services. During the recent increase in people trying to get a loan modification, there are have been many new start-up of these businesses.

The free and fee-based agencies have positives and negatives. Some of these may have legal help available. If you can, it would be advantageous to choose one of these because you might need that legal advice during the loan modification process.

If you are paying for assistance, remember that there are many dishonest con artists out there that are taking advantage of desperate homeowners who are facing foreclosure. Be sure you check a company's ratings with the Better Business Bureau.

The first step is to make an appointment with a counselor. You should bring all financial paperwork that you think might be applicable. They will examine and evaluate your financial situation and help you choose which option would be your best choice.

If it is determined that a loan modification is the way you should go, you will need to write a loan modification hardship letter. The counselor you are working with will help you with this task. This is an important part of the process because this is how the lender or bank decides your acceptance or refusal. They are looking at why you got into mortgage problems and how stable you are to pay the loan in the future with an adjusted payment.

True financial hardship that they are looking for involves causes that were not your poor judgment, but were things you could not do anything about. Your letter should clearly line out what happened to derail your finances. It could be job loss, divorce, illness, or other unavoidable events. Besides helping with your letter, your counselor will probably advocate with the lender as an intermediate on your behalf.

If you are struggling trying to pay your monthly house payment, you are probably not enjoying your life very much right now. You may be able to reduce your stress by applying for a loan modification. Find out as much as you can and see if you might qualify.

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