Since the housing crash, millions of Americans have lost their homes. If you have trouble making your monthly mortgage payment, it is important to learn what you can do if you are facing foreclosure, to either minimize its’ financial impact, or hopefully avoid it altogether.
Walking Away is Not an Option!
People facing insurmountable financial debt are often tempted to throw up their hands and just walk away. What would have seemed unheard of several years ago now is becoming more and more commonplace. This is particularly true if the home is “underwater.” In other words, the amount of the loan is more than the home is currently worth. People in this situation often make the calculated decision to walk away from their home and let the bank foreclose.
This is not a good idea for several reasons. A foreclosure will, of course, severely hurt your credit rating and you will probably be unable to purchase a home for many years to come. Also, your lender will still want their full amount due, and will likely come after you for the balance.
A Loan Modification May be the Answer
Just as soon as you realize you are in trouble, it is important to speak with your lender. Today, lenders have incentives to work with you in negotiating a loan modification. You have to remember that your lender really does not want to foreclose on your home; they would much prefer you stay and make your payments.
If they have to foreclose, they will lose large sums of money, and will have to deal with the property through a foreclosure sale.
Act Now
If you have reached the point where you are missing your monthly payments, you should take immediate steps to explore your options. If you get three months behind on your payments, your lender may not be willing to work with you. Often at this point, lenders forward your file to an outside company to pursue foreclosure, who will not be willing to work with you.
What Can be Done?
There are many viable solutions that can be worked out. Your lender may accept partial payments, late payments, and/or completely modify the terms of your loan. If you are approved for a loan modification, your lender can reduce the interest rate and the term of the loan, which will reduce your monthly payments. They will also, on occasion, agree to a principal reduction of your loan balance.
In addition to a loan modification, other options can be worked out with your lender as well. Forbearance is an option where you are able to skip your payment or make a reduced payment for a specified period of time. The lender will need to see that you will be able to make the payments when they become due in the future. Another option is a loan reinstatement, where you agree to make your missed payments at some time in the future.
Contact an Experienced Loan Modification Specialist for Assistance
While there are options out there to help you, it is difficult to navigate through this problem alone. It takes an experienced loan modification specialist to discuss your options, and help you deal with your lender so you get the results you need.
Free online software for the creation of personalized mortgage modification applications under the federal Home Affordable Modification Program (HAMP) and other lender programs is now available from FreeMortgageFix.com. Borrowers can complete an application to modify existing home loans via the site’s user dashboard.
According to Jonathan Ende, CEO of FreeMortgageFix.com, “by using our free online program, homeowners now have a quick and dependable option for dealing with unaffordable monthly payments and the threat of foreclosure. As this concern continues to escalate nationwide, we wanted to provide an equally affordable and helpful solution that can help turn families’ lives around in less than 15 minutes.”
Based on the borrower’s specific financial situation and lender, FreeMortgageFix.com software completes more than 100 different calculations and analyses to compile a customized report.
After the site confirms the homeowner’s debt-to-income ratio, net present value, and general eligibility, the appropriate lender forms are automatically populated and printed for submission with a customized cover sheet addressed to the lender.
Homeowners are also provided with tips, solutions, and warnings, as well as an online resource center, custom document checklists, a conversation log for maintaining notes on all discussions with the lender, and a to-do list manager.
External financial and legal assistance is also available if users require them, including a network of approved attorneys.