Stopping Foreclosure With Mortgage Loan Modifications - Things You Should Know Prior To Application

By Author: J.J. Yong
Total Articles: 963
Comment this article

When you are in the midst of financial trouble, and when you have missed a few payments on your mortgage loans, you risk being tried for foreclosure proceedings. Being unable to service your home loans would mean that you are currently unable to control your finances, thus your lenders would move in as soon as they can to seize your home and put it on auction so that they do not lose money from the deal that they struck with you. If you are in this position, and are desperately in need of ways to stop foreclosure, then why not consider a loan modification program to help you out?

A mortgage loan modification program can be obtained from the government (President Obama's Mortgage Modification Program) or several other lenders out there that offer this service. If you successfully alter the terms of your home loan, you can expect to pay lower amounts every month in terms of mortgage payments, making it easier for you to cope with the payments, and helping you keep your home from being seized by your creditor even when you are facing financial trouble. You can accomplish this by either lowering interest rates, ...
... or even lengthening the duration of your loan to your convenience.

Nevertheless before you opt for a loan modification plan, there are some things that you should be aware of. Firstly you must be aware of the requirements of this plan, which is subject to the terms and conditions of the lender that you choose to deal with. Many of these plans cater for those who are trailing in terms of mortgage payments, thus if you fall into this category, then there are plenty of choices for you out there. You can either choose to deal with your current lender and negotiate your way towards a better deal, or opt for a different lender and modify your mortgage loan accordingly. You also have the choice of dealing with the government through the Mortgage Modification Program, although application and approval might take a little longer to obtain.

Another program that you can consider if your mortgages are held by Fannie Mae or Freddie Mac is the limited modification program that defines that your monthly payment should exceed 31% of your total monthly salary, if not you do not qualify for it. Your home should also be priced below USD729,750 is you want to be eligible for this plan.

Last but not least, if you intend to qualify for any of these plans, you need to be able to provide proof that you are currently facing financial difficulties, and provide paperwork to back your claims. Documents such as pay-slips that indicate pay-cuts and job termination letters would be useful here. And always fill up the application form truthfully, or you could get rejected on the spot! All the best!
Find out more information about government help to stop foreclosure and how to stop foreclosure via StopForeclosureReality.com.