How to Get Home Loan Modification Hardship Assistance
While loan modifications have always been available, since the introduction of President’s Making Home Affordable plan in March the idea has become more common. The process has been made faster and more efficient. It has also become much easier. The first thing you need to do if you think this might be the answer to your financial difficulties is to get home loan modification hardship assistance.
As soon as you start to get concerned about paying your mortgage payments each month, you need to take action. Do not wait until you are behind or have missed some payments, don’t even wait until you have missed even one. Consult with a financial counselor to discuss your financial situation while you still have a chance to do something about it. There are some companies that will give you advice for free and others that will charge. Companies that work for free are generally charity organizations. However the recent demand for this service has lead to a sudden increase in loan modification companies.
However you choose to proceed, you need to know there are pros and cons to both paid and unpaid services. Take the time to research the company that will be dealing with your finances. Some loan modification companies work with lawyers that are available to work with you when you are trying to appeal to lending institutions. If possible work with a company that employs an attorney.
Be careful who you work with, especially if you are paying for the service. There are many unscrupulous people who will not think twice about ripping off unsuspecting homeowners, who are in a desperate situation, don’t be one of their victims. Choose a firm that has a good reputation and has been in business for a while. Check with the Better Business Bureau to check their history and rating.
After you pick a company, set up a time to talk to an advisor. Bring all the needed paperwork and be prepared to discuss your finances in detail. The counselor’s job is to learn about your finances and to teach you about your options.
If all goes well, and you are a candidate for loan modification, the counselor will help you write a loan modification hardship letter. This letter will be sent to the lender and should explain the hows and whys of your current financial situation. Focus on the circumstances that caused your mortgage bill to become a burden (layoffs, divorce, illness, death…) and attach your financial information. Your counselor will help you write this letter and when it is done, send it off to your lender and work on your behalf throughout the process of loan modification.
If you find you cannot make your monthly mortgage payments, you may qualify for loan modification hardship assistance. Learn how to choose and work with a loan modification company here.