A Mortgage Loan Modification Is A Setup For A Comeback
“I was unemployed for a while and have finally got another job but at considerably less money. I have been considering a loan modification and after contacting my bank they told me it would ruin my credit. I am not behind on my payments but am struggling to say afloat. A modification would assist in helping me become financially stable.”
You better check yourself before your wreck yourself! Do not be frightened by a mortgage loan modification impacting your credit score. A lower credit score is not a terminal illness nor a permanent state of your finances. It may take a little time to recover but current interest rates are still low enough for you to see a significant reduction in your monthly mortgage payment. However, you need an advocate to help navigate you through this process.
You should apply for the loan modification but this is how you should do it?
1. Go to http://makinghomeaffordable.gov before you try to negotiate with your lender. If you qualify for a loan modification you can find out there.
2. You will have to complete a great deal of paperwork documenting your current financial situation and reason for needing the modification. The most common reason for most applicants is a reduction of income from job loss or lower earnings. A housing counselor will review the information and send the documents to the bank. This step is very important because now they have documentation that you have applied for a modification from the lender.
3. When the lender contacts you and provides terms you will also have someone to advocate on your behalf who is objective.
This is coming from my personal experience and is exactly What Deborah Would Do!