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Loan Modification

By Edited Nov 5, 2015 0 1

The Foreclosure - Know how it affects your life!

There are rising cases of home foreclosure in recent times. Thus the American government is working hard to reduce it. Things have been improved after the introduction of the Mortgage stimulus plan. But there are foreclosure happening everyday despite all these solutions. The best way to avoid it is to foresee everything. When you see that your financial condition is going to get bad in a few months, it is better to contact the lender and explain your situation. If you have not missed any payments, you can get the refinance. Else you can go for a loan modification. The sheriff sale can only be avoided if you are pro-active. There are some people who want to escape from the lenders. They avoid the phone calls and do not have a chat with their lenders. This is only going to worsen conditions.

Getting a loan modification is very simple!

You might not be knowing the whole process of loan modification. But the fact is that it is very simple to apply and you have a high chance of getting approved. The American government wants people to go for these solutions in order to stop the recession. Thus people can get these modification easily at this period of recession. Do not miss this golden opportunity. There has been news that lenders have started giving more loan modification especially after the introduction of the "Making Home Affordable" plan.

Process of applying for modification:

These are the steps that need to be done for the application:

=>prepare a hardship letter - this is the letter that must describe the reasons that have led to missed payments. Write all reasons clearly in the letter. Some of the hardships that people commonly face are divorce, job loss or income reduction. You can write any hardships that you face in your life.

=>It is a must to submit the proof for what ever you are saying in the hardship letter. Some people have the habit of giving false reasons to the lender. This is only going to complicate things between you and the lender. Never do such things. Be honest with the lenders. They will definitely cross check things you say to them. So it is always best to avoid false claims.

=>do not try to write a very lengthy hardship letter. Always keep it short and sweet. This is because there are thousands of applications for loan modification given everyday to the loss mitigation department. So writing a short letter with precise content is going to help them.

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Comments

Jul 31, 2009 7:05am
beskajj
A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.
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