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The loan modification process all comes down to one thing, are you qualified. Can you get the lender to agree to proceed in granting you a loan process? The key to being accepted by the lender and gain access to this saving grace is to prove without a doubt that you are suffering from some type of hardship.
What is a Hardship?
A hardship is what can help you to achieve a loan modification and in turn save your home from plummeting into foreclosure. You must prove to the lender that you suffer from one of the below hardships in order to even apply for a loan modification. Here is a list of potential hardships that may give you a chance to take advantage of the loan modification process:
First, you must prove to the lender that there is a reason for your loss of income or decrease in income. This may be due to loss of your job or an injury at work that may have caused some type of medical disability that has left you at home for quite some time. This in turn may have left you unable to make your mortgage payments. You may not apply for aloan modification if you have recently filed bankruptcy. This is not a reason to get a loan modification. Loan modifications are established to help those with a hardship recover from their losses and get back on track. This process is not available to be taken advantage of in anyway.
What is not Considered a Hardship and How do I prove a Hardship?
You may not default on your mortgage, in order to apply for a loan modification hardship. Again, bankruptcy is not a reason to apply for loan modification; you will be instantly turned down. This is not a hardship, but another way to help you start over with your finances.
In order to prove a hardship, you must write a hardship letter that explains the loss of funds, including dates and figures. Next, you must complete a hardship form online or through the mail. The lender will need a copy of the past two year tax returns along with copies of two of your most current bank statements. A copy of your last two pay stubs is required, even if this is disability or unemployment, etc. If the property is for sale, the lender will require a listing agreement. A loan modification will now be in the works and every effort will be made to save your home.
Foreclosure due to hardships does not seem fair and that is exactly why the loan modification process has been established. With this option you may be able to lower your monthly payments just enough to save your home. If you feel that this process is a bit more than you can handle on your own and you need help, there are plenty of professional companies that will assist you in the process, for a small fee. Save your home today and inquire about a loan modification, it could be that last chance you have been searching for.
11 Comment
Comment
Oct 5,2009
The Feldman Law Center is the way to go. I made the mistake of going with someone, who had help other people with their modifications. Ater 9 months, I found he was playing catch up and had done nothing for me. The last straw was when he asked me for another authorization form. That same day I decided to go with Feldman Law Center. They jumped right on my case. Now I am fighting that guy to return my money. Go the attorney route.
by: Vivien
Jul 4,2009
The lenders don't seem to care about hardships, they just seem to care about you paying them.We provided all of our financial information to Chase and they said we make to much money for a loan modification. We are 23,000 behind and do not have the money. First they say they will help now we are in foreclosure. Can an attorney help even though we have been turned down?
by: Jay and Carrol Peterson
Jun 25,2009
Hey Gerald,
You can definitely try to reapply. Most law firms will give you a free consultation and tell you yes or no. It won't hurt to try again. Check out a blog I found called ML-Implode.com This guy has a list of firms he trusts
United Law Group, McFarlin & Geurts,Parsa Law Center,Parman Law Group, Shah Peerally Law Group, Mortgage Relief Law Center and Litchney Law Group. I believe all of these are located in California.
by: Stan
Jun 18,2009
I have been a mortgage broker for 12 years and got myself in trouble with the mortgage meltdown.After being denied for a loan mod on my own I found your site and got some useful information. I hired an attorney (Steven Feldman) and got a much lower payment and my 2nd mortgage eliminated. I am getting my life back on track now and owe my life to you guys for helping me find Feldman Law Center. I'm sure there are plenty of attorneys providing loan mods but Feldman seems to really know what they're doing.
Thank you,
Loan Goddest
www.lgloans.com
by: Loan Goddest
Apr 7,2009
There are a bunch of scammers out there to watch out for. Stick with an attorney that's been doing loan modifications and not some mortgage guy. No way would I use a loan mod shop. Feldman, Parsa, Parman and some others seem to be the premier choices. You might just want to see who's cheapest or go to their offices and see who you like.
Glad to help.
by: Johnny
Mar 20,2009
I am happy to find out this informatioin on the web. Thank you for that, however in this article you mention to write and submit a hardship form yet I am still unalbe to find such a form online. Where might I locate that, or can you please post a downloadable valid version on your site for all of us in distress. Again thanks
by: chris
Mar 20,2009
I recieved a loan modification offer from Countrywide 3 weeks after I payed a company $3,500 to do it for me. I was able to get half my money back from the loan mod company and finish up the process on my own, What a nightmare it was dealing with these guys. The people at CW were not helpful and straight out lied to me. After 3 months of run around with CW they finally told me I was aproved for a HIGHER payment! What is up with this goverment bailout and how do home owners like me get help? Countrywide said just because they told me something 3 months ago the guidelines have changed and after I pay my new mortgage rate I have $200.00 a month of disposable income. These guys are idiots and I really should have let the company help me. For a few thousand dollars it's probally worth it!
If you need help understanding your option of taking advantage of thehome loan modification process, the help is available to you everywhere. The process is quite tricky and it is highly recommended that you do indeed seek legal advice before signing on the dotted line, in order receive the most efficient and cost-effective modification to your mortgage payment.
Where do I get Advice
There is advice all over the web on how to receive a loan modification; some of this advice is quite helpful, while some is quite dreadful. There is also the opportunity to hire a professional service that will help you go through the paperwork and work with the lender to help you get all the benefits that you deserve, due to a hardship.Loan modification is a process that must be understood completely and thoroughly. This article can actually offer you an insight on the process of loan modification and tips that will better help you as a homeowner save your home from the risk of a foreclosure.
Loan Modification Advice
First and foremost, it is important to determine if you are eligible for a loan modification. This requires writing a letter of hardship explaining to the lender what exactly the reason is for your late payments and the fact that you are unable to pay your mortgage. Doing a loan modification on your own requires more than just advice. Becoming educated about the process is more important. This is perhaps a good reason to hire a professional loan modification company to take part in the process. They will handle everything for you, while educating you in the progression. There is a fee charged for hiring these companies, but in turn your mortgage payment can be lowered quite a bit and professionals can even find things in your original loan papers that may prove that the lender may have broken the law during your original mortgage signing.
If you do choose to take the big leap of the loan modification process on your own, you must first contact the lender and they will lead you to the correct department, normally the loss mitigation department. You may not want to directly say that you are in the process foreclosure. We do not want the lender to think your situation is not worth their time before hearing you out. Always document anything relating to the loan modification process, every phone call and any other information you may receive during the process must be documented. Always discuss every option available with your lender, so that you may come up with the best alternative for you. It is true you will save money going directly through your lender and let’s face it, you are struggling already trying to make your payments, but professional assistance can help immensely.
No matter what direction you decide to take, loan modificationwill be what determines the amount of time you have in your home. If you are eligible you should act as soon as possible.
