Many homeowners are not aware they may be eligible for a Home Loan Modification. There are various programs, some offered by government entities, that are available to homeowners seeking a home loan modification, but the most common avenue for obtaining a home loan modification is through the existing mortgage company. A home loan modification is an agreement that a mortgagor enters into with their mortgage company to modify or change the terms of the original mortgage. Modifications can change the length of your mortgage, lower your monthly payment, reduce your interest rate and sometimes even lower the principal balance of your loan.
Obtaining a Home Loan Modification
The best way to obtain a successful home loan modification is to be diligent, persistent and detail oriented. It is also important to keep detailed records of all communication regarding the modification. To start the process of a Home Loan Modification, you should first contact your mortgage company and speak to a representative in the modification department. I recommend that you get direct contact information for one representative and try and maintain contact with the same person. I further recommend correspondence via email as you will then have a record of all conversations with your mortgage company. In order to get approved for a home loan modification, you will be asked to provide a good bit of documentation to include pay check stubs or proof of income, tax returns, utility bills and possibly information about other debts that you owe. It is very important that you do not miss a deadline to submit requested information to your mortgage company. If you do, this usually causes you to have to start the process all over again from the beginning.
Once approved, the mortgage company may put you in a trial modification. It is very important that you make all payments, on time, pursuant to the exact terms of the trial modification in order to obtain your final modification.
Not everyone will qualify for home loan modification. It is, however, a good place to start to try and make your home more affordable to you. If you find yourself in a financial bind with your mortgage payments, our offices may be able to help you. Please contact our office nearest you immediately to schedule a free consultation to discuss your financial situation.
Amy K Tanner is a shareholder in several of the Bond & Botes Law Offices. She holds a Bachelor of Science from Auburn University at Montgomery, and a Juris Doctorate from Thomas Goode Jones School of Law. She focuses primarily on consumer bankruptcy law in the Huntsville and Decatur offices.Read her full bio here.