Home Loan Modification – Information to Help You Modify You Loan
Posted on | August 31, 2009 | 6 Comments
Home loan modification is a process that could help you save your home and avoid foreclosure. Many home owners want information that will help them to modify their home loan. The problem that many Americans are coming across is that it takes quite a bit of time and effort to go through this process and it can often be difficult to understand. There are many ins and outs that could deter you along the way but don’t get frustrated.
There are many online resources that will help you with the home loan modification process but here are some of the best:
HUD Guide to Avoiding Foreclosure
All of these resources are free to use and should help you get a good start on getting the home loan modification you need. Remember that this is just the beginning of the research you are going to need to do. Unfortunately you got yourself into this mess so you are going to have to work hard to get out of it as well.
Please understand that this is a lengthy process and cannot be done overnight. There will be many hours, days and weeks of research, time and effort you are going to have to put in to saving your home. In the long run it will be well worth it because foreclosure is the biggest financial disaster you can face in your life. It will take you almost a decade to recover financially from going through a foreclosure.
Another bit of advice is to ask your friends and family if they know anyone who has been through the process. There is nothing better than experience. If someone recently went through the home loan modification process, they can help you to avoid some common mistakes and they may also give you some advice on people to talk to to make the process much easier. You are not alone in getting a home loan modification, there are many people out there in a similar position to you.
Getting a home loan modification is not an easier process but it is well worth your hard work in the long run. By avoiding foreclosure and keeping your home you will be very proud of what you have done. You will also thank yourself later because you will be financially stable; at least financially stable enough to continue to purchase on credit. This ability cannot even be given a monetary value!
Author: Alan Lake
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6 Responses to “Home Loan Modification – Information to Help You Modify You Loan”
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August 31st, 2009 @ 1:19 pm
How will a loan modification affect my credit record or score if I ask the lender to lower my interest or payments for 5 years. It has to be some kind of affect on my credit? I know its probably better than foreclosure, but I am struggling now to make my payments for my mortgage and my credit cards, the economy has really affected my income, I may have to try and get a 3rd job.But everything is still paid on time for now!!
August 31st, 2009 @ 9:27 pm
I am working with an ACORN counselor who ran my numbers to see if I’d be eligible for a modification. Originally she ran them without my condo assocation dues and I came out at 30%. When I discovered the error I re-calculated and found my payment to be at 37% of my gross income. When I discussed this with the counselor she said the payment needed to be lowered to 31%-38% of my income. SInce I was at 37% I still dont qualify. I dont understand everything I read says making home affordable wants paymets to be 31% or lower. Where did these other percents come from or is this just bad information?
August 31st, 2009 @ 10:31 pm
I own a condo and have an outstanding balance of $140k, consisting of $104k primary and $36k secondary. I took the home equity to consolidate debts. At the time the property was valued at $163k but now it is valued at $134k. I’m looking to sell because i am engaged and will be moving into my fiancee’s home. http://www.obamamortgagerelief.org/.If I have a buyer who offers me within say $5-7k of the outstanding, can i agree to assume a loan on the residual and pay the bank the difference over time with interest? The same bank holds both mortgages.
September 1st, 2009 @ 12:50 am
Kitty, a loan modification itself doesn’t have any negative effect on your credit score or history. Missing mortgage payments has a huge negative ramifications, however, as does bankruptcy!
Keep in mind, a loan mod is merely a change in the loan terms; on credit it is still the same trade-line. I think you are thinking of consumer credit counseling and debt consolidation services, which are noted on your credit / do have negative effects.
September 1st, 2009 @ 7:28 am
I saw a loan mod package from WAMU and ther is something in there when you sign it stating that they can foreclose on you if they want to. Here is what it says, “I understand that if I have intentionally defaulted on my existing mortgage, engaged in fraud or mistrepresented any facts in connection with this Hardship Affidavit, or if I do not provide all of the required documentation, the Servicer may cancel the Agreement and may pursue foreclosure on my home.” I am going to tell the truth but how about if I make an error unintentionally. I am self-employed and I some of the figures to compute my income are estimated until I actually meet at tax time with my accountant. I am also not late on my mortgage, but if things in my life keep going like they are … I am on the brink .. and my figures will show I am in dangerous territory unless I get proactive on this. What do you think?
September 1st, 2009 @ 5:35 pm
You are right. It’s not an easy process, but for people trying it on their own, my company has been putting together a useful resource that has contact info for 60 banks and counting. Some are defunct, others are rolling right along. Hopefully, it can help people get to the right department.
Loan Modification Lender Contacts