| Many people assume if you have a mortgage | | | | difficulty. This letter has to contain certain |
| which has monthly payments you can no longer | | | | information and must be filed with the proper |
| afford, you are out of luck. Not true. There is a | | | | authorities at your loan modification lender, who |
| program enacted by Congress in 2009 which | | | | then determines your loan modification eligibility. All |
| gives homeowners the ability to modify their | | | | of this will be handled by your specialist, you |
| mortgage terms and avoid foreclosure. This | | | | simply need to give them paperwork as they ask |
| program is called a Hardship Loan Modification, and | | | | for it such as bank statements or pay stubs. |
| it allows you to change the terms of your | | | | Once the loan modification hardship letter has |
| mortgage with your lender to a payment you can | | | | been filed, and all paperwork has been submitted, |
| afford. Your past due mortgage is ripped up, a | | | | the most important step must take place, which |
| new one is drawn up with the same lender, and | | | | is negotiations with your lender for a new |
| you start fresh while clearing up any past due | | | | mortgage. Here is where it is crucial to have a |
| payments or foreclosure proceedings. | | | | professional on your side who has been through |
| When Congress passed the new laws which | | | | these negotiations before. You will not need to |
| created the hardship loan modification program, it | | | | spend hours on the phone with your lender asking |
| was in reaction to the startling rise in foreclosures. | | | | to speak to the proper person to negotiate with, |
| Congress realized many people had mortgages | | | | they will handle the discussions and work to get |
| that contained high adjustable rates that were | | | | you the best terms you can afford. |
| making payments almost impossible to keep up. | | | | You will need to work with your specialist to |
| That was the force behind the legislation, it | | | | come up with a monthly figure you can afford |
| enabled people to stay in their homes, and | | | | moving forward so they know what to ask for in |
| prevent foreclosure and the ruin of thousands of | | | | negotiations. This is important as you only get one |
| homeowners credit. | | | | shot with this program so please consider what |
| How does the program work? If you are a | | | | amount you can safely afford going forward. |
| homeowner who wants to change your mortgage | | | | Once you have determined what monthly |
| terms, the best way to start is to first connect | | | | payment you can afford, they will work to get |
| with a professional who has been through this | | | | this new amount in your new mortgage. |
| process dozens of times already. Much like a real | | | | If you have fallen behind in your mortgage, do |
| estate agent who handles all of the paperwork | | | | not delay, as you do have a great option you |
| and negotiations when you buy a home, a | | | | may not have known about that can keep you in |
| foreclosure prevention specialist (or loan | | | | your home and prevent foreclosure. If you delay |
| modification specialist) will fill out your modification | | | | and allow the foreclosure process to complete, |
| application, make sure all of the required | | | | you will lose your home, damage your credit for |
| paperwork has been filed, and then negotiate for | | | | years to come, and not qualify for a conventional |
| the absolute best new mortgage terms for you. | | | | mortgage again for many years. The loan |
| The foreclosure prevention specialist will first file | | | | modification help program prevents all of that |
| what is called the loan modification hardship letter | | | | from happening but you must act now. |
| which details what circumstances caused your | | | | |