Mortgage Loan Modification Secrets – The 4 Best Mortgage Loan Modification Secrets

When it comes to loan modification, there are four big loan modification secrets that everyone should know if they need to get their home loans adjusted. These are things that you can actively do to increase your likelihood of getting a modification.

1. Seek modification before you fall behind on payments.
2. Enlist the help of a financial counselor with an attorney.
3. Learn how to write a good hardship letter.
4. Know that foreclosure is unprofitable for lenders.

These four tips will help you obtain a mortgage loan modification so that you can stay current on your mortgage payments and avoid foreclosure. Let's talk about each of these trade secrets.

First, request modification before falling behind on payments. A lot of people think they need to be late on their mortgages before they can apply for loan modification. However, that's not at all true. You just need to be in danger of defaulting, and take appropriate action to prevent it from happening. Whether you are late or not, you can still get a loan modification. But waiting does limit your options so it's best to take action early on.

Second, see a financial counselor with legal representation. A financial counselor is almost vital to obtaining your loan modification. They understand the laws in a way you do not, and a lawyer to fight for your rights will mean that you can not be brushed aside or given a half-baked deal just because the lenders are busy and do not feel like devoting their full attention to your case.

Third, know how to write a good loan modification hardship letter. A hardship letter explains your financial difficulties to your lender and tells why you are petitioning for the modification. It should be two pages tops, as well as professional in nature. You should be frank about the seriousness of your situation and clear that your top priority is modifying your loan so that you can stay in your house. Your letter should demonstrate a commitment to responsibility.

Fourth, you must know that foreclosure is unprofitable for lenders. Lenders want to avoid foreclosure as much as homeowners do, especially at this time in our economy. Foreclosures are a drain on time and financial resources. Be optimistic about your chances of getting a loan modification. Lenders would rather modify the loan and make money on it than foreclose on it and lose money.

Source by Lindsy Emery

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