A Loan Modification Takes Some Work
Getting a mortgage loan modification can be a tireless job. It involves a lot of dedicated time and regular follow up work on the part of a homeowner in order to make sure everything is going well. Following up can make the difference between success and failure of your loan modification. I would recommend following up at least weekly. Some homeowners follow up even more frequently, however, it’s not always necessary to check back that frequently. Once a week is reasonable and standard when following up.
The benefits of keeping up with your mortgage loan modification can mean you end up being approved when things could have easily worked out the other way. If something is missing in your mortgage loan modification document you will be aware of it as quickly as possible, or with in about a week of the notice if you are communicating regularly with your mortgage company or lender. Once you are aware of what you need like something additional or if you need to complete a document a certain way, you are extremely likely to get that or those item(s) in or fix whatever error you needed to fix to stay on track and comply. Let me tell you from experience, it is important to comply, if you don’t comply you will find yourself getting denied letter fairly quickly. After all, you do not want to get a loan modification denial letter when you could have easily corrected the situation and be on your way to a possible mortgage loan modification approval with a much lower mortgage payment. Some homeowners that have gotten a loan modification have compared it to getting a mortgage refinance except without the additional fees, and they did not have to have good credit to get it either.
Lenders look at a lot of thing such as your income, your future ability to pay a new lower mortgage payment now and in the future, your property location, your property value, escrow, any negative escrow, how much you owe on your mortgage loan, your unpaid principal balance, your equity if any, your property’s broker price options, your property’s “as is value,” your property’s “fixed up value,” among other things. So if you can not provide them with something they may need such as updated pay stubs, and you think that your old pay stubs will work because it is too much trouble to fax or mail in some new ones. Then do not be surprised if you do not provide simple things that are requested and find your self denied, because it happens everyday with lenders.
Now if you have done all that you could have done and provided everything that was requested and you still do not qualify or did not get a loan modification; at least you gave it your best attempt. Unlike, knowing something is missing and you just wont provide it as requested. That is a different story. Always strive to provide what is needed for the best possible outcome with getting some mortgage help.
Remember lenders are always looking for the most suitable option for all parties to work something out. Lenders are not into foreclosing on properties because of the cost to them for doing so. They look at the pros and cons before foreclosing on a property. A mortgage lender looses about $30,000-40,0000 on each home that they foreclose on. Foreclosure to them is doing something that they really do not want to do, but they have no other suitable choice to recoup their losses. In other words they foreclosure because they have to, not because they want to. Lenders draw a line at some point as to when they have to foreclose based state and federal laws, your delinquency status, and other relating factors. So they want to help a homeowner, but the homeowner has to do his/her part too.
A lender would like to have a borrower do these things in order; they would like for a homeowner to pay their mortgage payments, if the homeowner can not make the mortgage payment they would like to work something out with the borrower such as a loan modification, short sale, or a deed-in-lieu of foreclosure. They are several mortgage loan modification programs available right now. Plus, there are more coming out on a regular basis. The latest loan modification program that is set to come out is set to be unveiled in October of 2010. This program will concentrate on lowering a mortgage principal unpaid balance unlike the other programs in the past which did not emphasize this as much as this new program that is set come out soon. There is another program that is available at this moment that focuses on assisting unemployed homeowners, so as long as the borrower is no more than 60 days past due with his/her mortgage payments, he/she can get a 3 month break in their mortgage payments and pick it up at the end of their loan. Most people are already familiar with the Making Home Affordable Modification Program(HAMP) which was a part of the last government stimulus package that went into law April of 2009. There are also several lender’s or investor’s loan modification programs available.
You just have to communicate with your lender and ask for mortgage help if you need it, because it is available to you if you qualify. Getting a loan modification will mean you got a chance to wipe the slate clean and start over fresh with your payments. You will even start seeing your new payment history showing up with the credit bureaus once again, positively.
