| Home Loan Modification Description |
| "Mortgage Modification" is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified. |
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| Modification Background as defined by Wikipedia |
| In the normal progression of a mortgage, payments of interest and principal are made until the mortgage is paid in full (or paid-off). Typically, until the mortgage is paid, the lender holds a lien on the property and if the borrower sells the property before the mortgage is paid-off, the unpaid balance of the mortgage is remitted to the lender to release the lien. Generally speaking, any change to the mortgage terms is a modification, but as the term is used it refers to a change in terms based upon either the specific inability of the borrower to remain current on payments as stated in the mortgage, or more generally government mandate to lenders. |
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| About Loan Modification |
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. Becoming educated about the process is more important. This is perhaps a good reason to gain as much information as possible from DIY "Do-It-Yourself" help and information based websites. They will provide the tools you need, while educating you in the progression. There is a minor fee charged for viable programs, but in turn your mortgage payment can be lowered quite a bit.
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. DIY Modification sites like modifyit4less.com provide the proper automatic time/date stamping note system to help your organize your tracked information. 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 going to need software help to help your prepare your financials and proposal, or your lender will most likley fail to understand your situation. It's not in a lender nature to invest money to loose money, and any department setup to work with you in this area will most likley reflect that.
No matter what direction you decide to take, loan modification will be what determines the amount of time you have in your home. If you are eligible you should act as soon as possible. |
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