If you are behind on your monthly mortgage payment, because of a possible increasing adjustable rate loan or any additional financial problems, there are some ways for you to stop the foreclosure process and keep your home. It is crucial to ask your lender for assistance once you realize your mortgage payment is going to be late. Unfortunately, most home owners don’t request assistance until they are literally escorted from their home by the police.
By asking your lender for assistance once you know that there will be a payment problem. Most lenders will give you a loan modification before there is something negative on your credit report. It is very simple to request assistance before you are just days from having your home sold from underneath you.
If you do not have the time and persistence to ask your lender or various departments for a loan modification, there are loan modification companies that do this for a fee. The fees and range of services can vary from one company to another so it is suggested you contact a few until you are comfortable about the charges and what is included in the services. If you choose to hire a loan modification company it is recommended to get the services they offered to you in writing. As a client, you want to be certain that they finish each service that you are to receive for your loan modification program.
Even if you have waited until very late in the default or foreclosure process, you can make a final push to save your home by asking for a loan modification. Your current lender may accept and add any delinquent payments to the principal balance of your loan permitting you to be current with your mortgage payment. When requesting a loan modification directly from your lender ask for a fixed rate mortgage payment so it won’t swing up periodically.
Due to the current mortgage crisis from sub-prime loans, stated income loans, ridiculous option ARM loans and adjustable rate resets in the upcoming 18 months, an increasing number of mortgage payments, will become delinquent and begin the foreclosure process. Overall, borrowers prefer to stay borrowers and keep their homes should the lender accept you as a candidate. The earlier you begin requesting a loan modification, the easier it will be to receive the assistance you need from your lender. So, you have nothing to lose but your house if you take too long.
