You Can Modify Your Mortgage

INTEREST RATES ARE STILL LOW - LEARN ABOUT A LOAN MODIFICATION OR A REFINANCE

As unemployment continues to plague the nation, mortgage modification or refinance may be more important than ever. The information, steps and resources to learn more about mortgage loan modifications are included below. Mortgage Modification offers homeowners an alternative to foreclosure and can significantly lower monthly mortgage payments. Interest rates are low, foreclosures continue to rise and lenders are motivated to assist borrowers with a mortgage modification.

A Mortgage Modification may be the key to avoiding foreclosure and financial disaster. There are many sources for information and help. You might want to start with a call to your current lender. The better prepared you are when you make that phone call, the greater your chance for success. Arm yourself with the facts about mortgage modifications and refinances and understand what the lender may want from you.

How does a mortgage modification help

"Never grow a wishbone where your backbone ought to be."

Clementine Paddleford

Now, what in the world does the above quote have to do with modifying your mortgage? It is the attitude of the quote that must be captured. Let's connect the dots.

Our current economy is very ill - loss of jobs at a record high, the housing market slump, and the failures in the banking industry are symptoms of the disease. Now, we can sit back and "grow a wishbone" declaring that we wish we had a new job, we wish we could sell our house or refinance, and we really wish that the banks were kinder and more patient with our inability to pay the increased mortgage payment. So, we wish and wait but the magic genie doesn't appear. It is now time to grow a backbone!

Assess the options and possibilities that do exist in your world. If you are employed, thank God and worry about finding a new job when the tide turns - and, it will! If you are facing foreclosure or if it has become harder and harder to make the mortgage payment, a mortgage modification may be the answer. Although the new government financial incentives to banks should have paved a smoother road for borrowers seeking a mortgage modification, the reality has been quite different. I recently spoke to a woman that wanted to modify her mortgage. After several days and countless hours on "hold", she was connected to the right person. Ms. Right told her to attend a "counseling session" at the bank the following week to get the mortgage modification process started. She envisioned a one-on-one meeting with a banking professional. Much to her shock, the large meeting room included about a hundred people seeking mortgage modifications. Handouts were given to the customers with the instruction to read the material at home, complete the forms and call for an individual appointment. Oh, and by the way, it would take two to three weeks to get on the schedule. The woman left the meeting, went to her car and sobbed. Her mortgage modification ended there.

Take control of your own financial situation. You can do your own mortgage modification. Yes, you can! And, more good news - you'll save thousands of dollars. If you are facing foreclosure, a mortgage modification may save your home. If you are struggling to pay the monthly mortgage, act quickly. The faster you take control and act, the better your chance for a successful mortgage modification.

Okay, I'm convinced. I need a mortgage modification. Where do I start?

Your first step should be a complete financial inventory. What is your income and what are your expenses? How much money do you have at the end of the month when everything has been paid? Be sure this information is accurate and complete. The bank will need a list of all assets and liabilities. This chore needs to be a priority. You want to be armed and ready when you take step two.

Step two should be accomplished as soon as possible. You must call the lender. Let them know about your situation and your need for a mortgage modification. Be sure you take notes during this call and every subsequent call and keep your notes organized and in one place! Be prepared to stand up for your rights and fight for your home. A word of caution - you are not in the driver's seat so be polite, remain calm but remain firm and persistent. Next, be prepared to explain why you need the mortgage modification. It is strongly recommended that you have a draft of a hardship letter at your fingertips when you make the call. When you reach the point that you finalize the hardship letter, check your spelling and grammar. Again, be polite and remember to thank your banker for the anticipated cooperation and assistance.

WOW! I found my backbone and I'm ready to fight for my home.

There are tools and resources that will assist you in doing your own mortgage modification.

Take Action to Modify Your Mortgage

CNN reported today, September 15th, 2009, that only "12% of eligible borrowers" have taken advantage of the mortgage modification option established to keep homeowners out of foreclosure. TIME TO ACT!!

The recent numbers indicate that unemployment is at an all time high and foreclosures continue to rise. Do not procrastinate if you are behind with your mortgage payments or struggling to make the payment. Take action and fight for your home.

IMAGES: All images on this lens have been purchased or are public domain or have the required attribution link for credit

ACT NOW, MODIFY YOUR MORTGAGE

As the unemployment numbers climb and foreclosures increase, the lenders may be more than willing to consider your request for a Mortgage Modification. Lenders really have no interest in ownership of your home. It is beneficial to the lender and the borrower to approve mortgage modification whenever possible - but you need to ask!

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