Loan Modifications can sometimes lower your monthly payment and get you back on track. This is a program where the lender you are currently with takes your principle balance (what you still owe on your mortgage), add your missed payments with the current interest rate to give you a new monthly payment.
How do I get started?
The first step is ordering the application from your lender immediately. Some lenders have the application available for download and printing while others make you wait for it to arrive in the mail. We can help you get in touch with the right department to get your application ASAP. If you don't have a printer give us a call and we'll bring the printed application to you.
How long does the process take?
Like any big business or government entity, they all seem to work at a snails pace. Most of the lenders will take 2 months from application to approval so the best time to start is yesterday. The next best time to start is right now. They will not postpone the foreclosure auction because you have a modification package submitted that they are still reviewing so get moving on this right away.
What will I need to apply?
Although your credit score and payment history will not be held against you, they will need to know that you can now afford the payments. You will need:
-last 2 months bank statements
-last 2 months income payment stubs or most recent award letter if you're receiving disability, social security, etc.
-letter of hardship explaining why you got behind on your current payments like a death in the family, injury, military service, etc.