First place to start; check with your lender to see what loan modification programs they offer and what are their qualifications. If you have suffered a job loss, seperation, divorce, military service or sickness, most lenders are willing to work with you to help you stay in your home, and these situations are legally accepted as a form of hardship. On that note, they must see that you are dedicated and willing to do whatever it takes on your part to come to a reasonable solution.
According to the lenders I have spoken to, they all have different programs and offer different solutions. Some will offer to refinance you all together, others look at the equity in your home and other assets, most look at everything. Remember, they took a chance on you the first time around and they are willing to give you a second chance, so be cooperative and honest, it makes things so much easier for all parties involved. This is not time to point the finger, remember your goal is to keep your home.
If you still have the ability to pay your current mortgage, at it's current rate but you are seeking to take advantage of lower payments through loan modification, I must warn you, you could be making things much worse for yourself. The last thing anybody needs is to be charged and prosecuted for fraud. If you've already assumed a "get out of the contract mindset" and are willing to walk then a loan modification is not for you. You should be considering other options such as a Short Sale or Bankruptcy. So do us all a favor and just do the right thing. In the end it will affect us all.
If you are worried that your credit score is so bad you won't possibly qualify, don't fret. Unlike the option to refinancing out of trouble, which requires you to apply for a new loan, a loan modification simply adjusts the terms and perhaps reduces the balance of the loan currently in place. Your credit score is not the most important factor in determining wether or not you qualify. In fact, a successful modification can improve your credit score over time.
The worst thing you can do is ignore your lenders requests to communicate with you. Pick up the phone before it's too late and find out about your options. Lenders are more willing to work with you now than I've ever seen in the past. This is to your advantage...just don't take advantage.
I have gathered a few links from a simple search on Google and Bing. I do not endorse or promote any of them, I just thought they offered great information from reliable sources.
BEWARE!!! There are scams out there!! DO YOUR HOMEWORK!!
As always, Caveat Emptor; Buyer Beware!!
Feel free to call or email me with questions. Make it an awesome day!!
Nicole Dion-LeBlanc
Realtor
nicole@for-sale-for-rent.com
www.for-sale-for-rent.com
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