Loan Modification Pressure

How you react under pressure is a true indication of your character. In difficult times, don't worry - face the facts and find a way to help yourself. This advice applies to financial circumstances as well, if you cannot pay your bills and especially your mortgage you need to do something about it. All may seem lost, but it isn't. You can begin by contacting your lender and telling them your situation. Take a look at the sample loan modification letters on this website, they will help you find out what to write in order to explain your circumstances and convince your lender to help you.

It is a difficult task to write a hardship letter. You will feel like you have made mistakes and lost control of your life. But you have to let the lender know all the details so they will want to help you catch up on your loan. It is not a fun position to be in, but it only gets worse if it is ignored. The situation is not going away and if you begin to deal with it, you can reduce your stress.

Be honest, be personable and be concise. There is no need to make things sound worse than they are or embellish the truth. Make sure everything you write is true and tell the banker how you got to this point. For example if your business collapsed or someone in your family became ill, tell how this impacted you financially.

A well-written hardship letter will cause the lender to empathize with your situation, learn about your circumstances and give you advice about getting your finances in order, maybe by helping create another way for you to pay your loan. Take a look at the Loan Modification Financial Hardship Letters on our website, and contact us if you think we can help you.

These Loan Modification Financial Hardship Letters will assist you taking back control of your finances and planning your future during these difficult times. A personalized letter that lets your lender know the details of your circumstance will open the door to renegotiating your loan and giving you hope for the future.

Loan Modifications – 5 things to consider

The loan modification foreclosure program can be frustrating and confusing for many distressed homeowners. If you are considering contacting your lender about a loan workout to avoid foreclosure, you need to get as much information upfront as possible so you will be prepared and able to present your case in the best possible light. Programs and guidelines are changing and it is getting much easier for homeowners to get the help they need. To help you understand how the process works and what you can expect, here are the Top 10 Questions and Answers:
1. Define loan modification?

A loan modification is a undying variation in one or more conditions of a borrower's home loan, allows the loan to be reinstated, and results in a payment the homeowner can afford.

2. Do the lenders include late charges in the Loan Modification?

Per HUD, the accrued late charges should be waived by the lender at the time of the loan workout-this varies depending on the type of loan-but always request a complete breakdown and description of all fees and penalties from your lender

3. Government programs help me get a loan modification?

The Federal government has allocated $75 billion dollars to subsidize lenders and servicers who offer a loan workout to their clients. Now, the banks will have a monetary incentive to offer help to qualified borrowers. In addition, homeowners who pay their new modified payments on time will be eligible up to $5000 credit to their loan balance.

4. How to qualify for Loan Modification?

(1) your lender is looking at is your ability to make the new modified payment now and in the future. (2)You need to supply the lender with proof of your income, along with a complete and accurate financial statement detailing your income and expenses to show them that if granted the modification, (3) you will be able to afford the new, lower payment

5. Do I have to be currently delinquent on my payments to get a loan modification?

Most lenders are now accepting applications from homeowners who are not currently delinquent, but who are able to prove to their bank that due to imminent interest rate increases, they will no longer be able to afford the loan payment under the terms of their loan. It is advisable to contact your lender as soon as possible to start the loan modification process, regardless of if you are delinquent or not.

President Obama's Homeowner Stability and Affordability Plan offers real hope for millions of homeowners who need a solution to stay in their home. Not everyone will qualify however, and interested borrowers will have to complete loan modification foreclosure application forms, provide proof of their income and meet certain eligibility requirements.

Most lenders are participating in this new government subsidized plan, and homeowners are encouraged to learn how they can qualify and apply for a loan foreclosure Program and avoid foreclosure.