When the economy took a sharp dive several years back, many homeowners defaulted on their mortgage payments and faced foreclosure. Fortunately, some lenders were considerate enough to offer options so that borrowers can avoid foreclosure. One of these options is the home loan modification Groton CT lenders have implemented.
When a borrower applies for a home mortgage modification, the lender is now required by law to provide options that can ease up the borrower's monthly payments. These options may include extending the loan term, lowering interest rates, refinancing the balance of the loan or rolling unpaid amortizations into the outstanding loan amount with lower interests. Some borrowers may not be aware that these options are available and are meant to help them save their properties from foreclosure.
With the federal program Home Affordable Modification Program (HAMP), homeowners get more protection from foreclosures even after they had been delinquent on their monthly mortgage payments. Lenders are now required through this program to provide options to borrowers and help them prevent foreclosure of their properties. In return, lending banks and institutions who join this program are given incentive payments by the government.
There are certain standards that lenders have to follow before foreclosing on properties. One is that they must inform borrowers of several options available and encourage them to participate in a mortgage modification program. Once a borrower becomes eligible, the lender can no longer continue foreclosure proceedings on the mortgaged property. Borrowers must submit necessary documents and an affidavit proving that they are currently unable to meet mortgage payments.
If you are in a situation where you have missed many of your mortgage payments, you should talk to your lender to know what your options are. You will, most likely be required to present documents in order to qualify for a home mortgage modification. Documents include payslips, tax returns, credit card statements, a list of assets that you own. You also need to write a formal letter explaining the reasons why you are unable to meet your financial obligations.
Most lenders are quite flexible, especially if you have been a valued client for many years. Do not wait until you get the notice of foreclosure. Instead, think of your options and talk to your lender to suggest a restructured payment method. Your lender will even appreciate your desire to repay the loan within your current means.
It may also be a good idea to consult a real estate mortgage expert who is familiar with mortgage modification plans. They may be able to help you prepare the necessary documents, negotiate better terms on your behalf and shorten the processing time for the lender to approve your request. These will make things easier for you and make the process less stressful.
Find out if you are qualified for a home mortgage modification program by gathering and submitting your documents. If you do not qualify, there are other options that you may consider to help you out of your financial problems. You may consider requesting your lender to approve that you sell your property for an amount that is less than what you owe your lender.
Another option is to apply for a forbearance. This means requesting your lender to suspend your payments for a maximum 90 day period which will give you time to study your options. You will need to see an expert who is familiar with the process of home loan modification. Act fast in order to prevent your property from getting foreclosed.
When a borrower applies for a home mortgage modification, the lender is now required by law to provide options that can ease up the borrower's monthly payments. These options may include extending the loan term, lowering interest rates, refinancing the balance of the loan or rolling unpaid amortizations into the outstanding loan amount with lower interests. Some borrowers may not be aware that these options are available and are meant to help them save their properties from foreclosure.
With the federal program Home Affordable Modification Program (HAMP), homeowners get more protection from foreclosures even after they had been delinquent on their monthly mortgage payments. Lenders are now required through this program to provide options to borrowers and help them prevent foreclosure of their properties. In return, lending banks and institutions who join this program are given incentive payments by the government.
There are certain standards that lenders have to follow before foreclosing on properties. One is that they must inform borrowers of several options available and encourage them to participate in a mortgage modification program. Once a borrower becomes eligible, the lender can no longer continue foreclosure proceedings on the mortgaged property. Borrowers must submit necessary documents and an affidavit proving that they are currently unable to meet mortgage payments.
If you are in a situation where you have missed many of your mortgage payments, you should talk to your lender to know what your options are. You will, most likely be required to present documents in order to qualify for a home mortgage modification. Documents include payslips, tax returns, credit card statements, a list of assets that you own. You also need to write a formal letter explaining the reasons why you are unable to meet your financial obligations.
Most lenders are quite flexible, especially if you have been a valued client for many years. Do not wait until you get the notice of foreclosure. Instead, think of your options and talk to your lender to suggest a restructured payment method. Your lender will even appreciate your desire to repay the loan within your current means.
It may also be a good idea to consult a real estate mortgage expert who is familiar with mortgage modification plans. They may be able to help you prepare the necessary documents, negotiate better terms on your behalf and shorten the processing time for the lender to approve your request. These will make things easier for you and make the process less stressful.
Find out if you are qualified for a home mortgage modification program by gathering and submitting your documents. If you do not qualify, there are other options that you may consider to help you out of your financial problems. You may consider requesting your lender to approve that you sell your property for an amount that is less than what you owe your lender.
Another option is to apply for a forbearance. This means requesting your lender to suspend your payments for a maximum 90 day period which will give you time to study your options. You will need to see an expert who is familiar with the process of home loan modification. Act fast in order to prevent your property from getting foreclosed.
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