Many people have been asking “does loan modification work?” Well the short answer is YES! But you have to go about applying for a loan in the right way or face rejection. This article will outline a strategy for applying and getting approved.
Before I go into the strategy let me clear up one misconception about modifying loans. The initiative was put forward under Obama led stimulus package. The umbrella policy is called Home Affordable Modification Program or HAMP for short. The policy was especially geared for people who are facing financial hardship and can’t make the payments on their mortgage.
Now Here’s The Strategy for Getting Approved:
The first thing you want to do is get a record of your entire past mortgage payments and your present expenses. Once you get this together you’ll be able to present a decent picture of what your current circumstance are like to the potential lender. It’s very important that when you do this only accurate information is presented. Too many people try to hide things and get caught; which naturally results in a big fat rejection letter.
The ‘expenses’ picture will demonstrate to the lender that if you are approved, you’ll be able to make your new monthly repayments. In this regard you need to be honest with yourself when you think about applying for the loan. Falling behind on a modifying loan will almost certainly get you foreclosed.
The Hardship Letter
The hardship letter will be like a plea for help. It’s one of the most important documents you’ll be providing to your lender. As such, it needs to be structured well and not containing too much fluff. Stick to the points that show how you got into your present difficulties. If you recently lost your job, mention this. If you recently had unforeseen expenses like medical bills, include this. Vay the chap
I am really happy to have shared the strategy outlined above with you because it works. It can be even more effective if you use an online loan modification company to handle the whole thing for you. For one thing, the hardship letter is taken care of on your behalf and most will take a professional and thorough look into your situation for free. Yes, you read that correctly – FOR FREE! I hope you take action and save your home from foreclosure. The question ‘does loan modification work’, will no longer apply to you if take action.
Final Note: The loan mod process can be frustrating and overwhelming. Having a specialist on your side can greatly reduce the stress, as they do all the negotiating and paperwork on your behalf. I highly recommend obtaining a free loan modification evaluation [http://www.unitedprocessingcenter.org] in order determine the best course of action based on your financial situation.