Many homeowners find it hard to pay their mortgages when they suffer job losses or illnesses or are stuck in loans that should not have been approved based on their incomes and resources. When this occurs, remodification of the home loan can be a way of holding onto the property. Most lenders allow you to apply for remodification whether or not you are in foreclosure. During the process, you must stay on top of every aspect of the paperwork and communications with your lender.
The loan modification procedure can be a lengthy one. It is important for young couples to be diligent about documentation during this time. Keep every piece of mail sent to you from the lender and, if you have one, your attorney. Remember to log every call made and received that involves your home loan and its remodification. Pro Publica reminds you to carefully record each event in the process. Make note of the date and time of the call, the name of the person with whom you spoke and what was said. Keep a file box that is dedicated to information about the remodification.
Carefully read the documents you receive about your loan. You are likely to have much written correspondence from your lender. You might also receive communications from your local Superior Court regarding foreclosure hearings at this time. Always respond to each communication and do not skip any court hearings even if your loan is up for remodification. Ask questions from your lender about anything you do not understand. Realtor.com says you can hire an attorney or loan specialist to help ensure your paperwork is accurate and all steps are followed according to the law, but it is vital that you stay abreast of each aspect and communication involving your home loan. Follow up weekly with calls to the professionals working on your loan remodification to obtain updates. Let them know how important it is to you to save your house.
Maintain Status Quo
Do not make any large purchases during the remodification. Nor should you make any unnecessary changes to your financial situation such as co-signing a loan for someone else. Any changes must be reported, and any alteration could cause the remodification to start over, meaning you would have to resubmit all your financial information. Of course, if you receive a job offer that is lucrative enough to ensure you can make your original house payment amounts, you should probably take it. In this situation, you should consult an experienced real estate attorney to determine the best course of action.
Resolve Ambiguities and Misinformation
Make sure you clear up any ambiguities you encounter while attempting to obtain a remodification. For example, if you receive two different statements reflecting different amounts owed on your loan, you need to call the lender immediately for an explanation and reconciliation. Large lenders have many employees who are most likely reading your information from a computer screen and are not personally familiar with your case. This means you need to establish a working relationship with a top person who makes decisions about your loan.
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