The Loan Modification Procedure - Is It Possible To Modify My Own Home Loan?

By Author: J.J. Yong
Total Articles: 963
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Imagine just losing your job and not being able to service your monthly mortgage loan effectively. Before you know it, you would end up losing your home to your creditors unless you do something about it! One particularly simple and effective way to salvage your home without losing it to your creditor would be through loan modification, a process where you work with your lenders to negotiate better terms and conditions for yourself to allow you to cope with the loan better. You could also request for an extension of the loan duration to allow for lower monthly payments so that you can deal with these payments in an easier way.

Loan modifications are now available through not only your lenders, but also from the government. President Obama has introduced the Mortgage Modification Plan to help homeowners ward off foreclosure trouble, and this has made mortgage refinancing available to almost everyone now!

The loan modification procedure is not too complicated in reality, you could start by drafting a letter addressed to your lender requesting for a modification of your current loan due to difficult financial conditions. ...
... Ensure that you have all the proper supporting documents in place when you request for this modification, for instance if you have recently lost your job, your job termination letter would be useful to negotiate with your lenders. You could also hire a lawyer to help you with the guidelines and specifications that you need to adhere to, but if you are confident about doing it yourself, you could proceed as well.

Once your lenders respond to your request, you could probably schedule a meeting with them to work out a new deal in regards to your home loan. If your lenders are not willing to negotiate on interest rates, perhaps you could request for an extension of your current loan deal that would help you cope with the mortgage loan better through lower monthly payments. But usually the lenders are willing to negotiate due to the fact that the foreclosure process would not only mean that you lose your home, it would also mean that the lenders would have spend quite a bit of money on the proceedings.

When both parties agree to the refinancing of the property in question, the last things to accomplish are to define the repayment duration, the interest rates and the monthly repayment amount. When this is completed, you could then start paying your loan again with a lowered monthly payment that would be a lot more convenient for you! Thus for the question of is it possible to modify your own home loan, the answer is definitely a yes!
If you asked yourself - should I refinance my mortgage? Find out more mortgage refinance tips to save your home from foreclosure via http://MortgageRefinanceReality.com