If you are home owners struggling against foreclosures, you need to consider loan modification as one of your options without any delay. This is due to the fact that housing foreclosures are a tangled web to unravel.
But sometimes loan modification procedure could falter because of the lack of trained staff on the part of lenders to handle the complicated loan modifications. However you could help speed up the process of loan medication to avoid foreclosures by following certain important guidelines.
The following are guidelines to be followed while dealing with lenders in the loan modification process:
Record every thing on paper: Lenders often lose track of your application for loan modification. In order to avoid delays in the processing of your request, you must record or document all the details of the efforts made on your part. Even details of telephone calls made to and received from lenders and lawyers as well as all transactions must be recorded in detail.
Create a personal financial statement: A vital part of loan modification is the financial statement you have to submit to the lenders. The lenders may have their own financial documents but you must have one of your own, prepared by yourself, available for ready reference whenever required.
Provide detailed information: In order to avoid delays in processing of your request for loan modification, you must provide detailed information to the lender. The work sheet of the Federal loan modification program consists of the following details:
- Personal information: residential information, telephone number etc
- Estimate of the value of your home
- The amount of your monthly income
- Any additional income
- Sum total of your investments, savings, stocks and bonds
- Details of other outstanding liabilities like loans, credit card debt, electricity bills etc.
Keep all bills: You need to provide correct information to your lender and your loan modification lawyer. So you have to keep all records ready. By retaining bills of the past and present, you are ready to furnish all information whenever required because lenders may want you to submit bills along with records of hardships when you are required to prove your eligibility for loan modification.
The Obama administration’s mortgage modification program is free of cost to home owners to take advantage of but the application process is strict and full of details. The first consideration is that the borrower must have defaulted on his mortgage payment. The second condition is that the home owner must be living in the premises of the home whose mortgage has been defaulted upon.
The aim of the Mortgage modification program is to reduce monthly payments to no less than 31% of the household income. The aim of this program is to reduce the rate of foreclosures for sale in the country.
