Tuesday, June 27, 2017

Three Key Elements To Mortgage Loan Modifications

If your house payments are out of control, you need to find a way to rein them in to a more affordable figure. One good way to do this is to have your lender modify your mortgage terms. A mortgage modification is a program offered by most lenders whereby you can reduce your interest rate, and by doing so also reduce your monthly mortgage payments. You might also consider reducing the amount of time you are paying on your loan, and this can save you thousands of dollars in interest over the years but will probably not give you a lower monthly payment. If you are struggling, reducing your payments is the best option, and we can help.

Before you decide to seek a modification of your mortgage you need to know a little bit about the process. Here are three key elements to getting your mortgage loan modified:

         There is an application form that you will have to complete. Like most things, an application is how things get started, and a mortgage modification is no different. In order to have your lender consider your loan for a modification, you will need to fill out the proper application and provide requested documents.
         You will need to provide pay stubs and other proof of income as part of your application. You might also be asked to provide copies of your tax returns for review. Whatever you are asked to submit, keep copies and a record of when and how you’re sent the requested documents to your lender. It is not unheard of for a lender to misplace documents, and ask for them to be resubmitted. This can slow down the process, but if you have delivery receipts and copies of what you sent you may be able to avoid sending duplicate copies.
         There may be a trial period. Some modifications first start with a trial period, where the homeowner makes the reduced payments for a period of a few months, and if those payments are successfully made then the lender will finalize the modification. It is important to know whether your case includes a trial period, because it is possible that during that time you may have reports being made that you are paying less than what is due on your loan. If so, you may be putting your credit at risk and will want to negotiate further.
Modifying your mortgage is a good tool when you are in too much debt, or your house is worth significantly less than you owe. For help throughout this process, call us today.


For more information about how to handle overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

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