Wednesday, April 8, 2009

Loan Modification "how To" - Important Steps To Avoid Foreclosure

Obtaining a loan modification is not something that homeowners look forward to. This is due to the fact that in most circumstances a modification is a step taken by someone who is facing inevitable foreclosure if they don't find a way to reduce their monthly mortgage payments. At times it can be difficult to understand the loan modification process. There is good news however, the process doesn't need to be as difficult as many people think. You just have to understand what is involved and take the appropriate action.

Loan Modification "How To": Writing A Hardship Letter

Writing a hardship letter is one of the most important things you can do when you are looking to get a loan modification. This letter should briefly outline why you need to modify your existing loan. It should also explain why receiving this modification to your loan will help you to ensure that future mortgage payments will be made on time and with no further issues. It is important to avoid emotions and complaints in the letter. Keep the letter short and to the point - focusing on the details of your situation. This will increase the chances that the bank representative will read the letter and respond favorably.

Loan Modification "How To": Getting Results

When you are going through the process of applying for a mortgage modification it is important to stay in contact with the bank. Do not expect the bank to do anything on its own without any form of outside influence from you. Most banks are processing many mortgage modification requests, with new requests being received every day. So, failing to stay in contact with the bank can lead to your request ending up lost or overlooked. Remember to contact the bank and let them know each time you send a fax or email to ensure they received the document. Also, maintain a record of phone calls and other communications with the bank - who you talked to, what you discussed, and the next step (and expected date) in the process.

Be sure you understand the mortgage modification process and the specific requirements of your lender before contacting the lender.

By: Mark Winfield

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