If you have finally gotten approved for a loan modification, you might wonder how you’re ever going to be able to get your finances back under control. Even if things haven’t gotten truly bad yet, you should still be talking to your mortgage lender before you do anything else. It’s tempting to just hide under the covers and hope that your situation changes but life rarely works out this way. Facing your lender before things get really bad heightens your options. Lenders have their own modification programs depending on how much you make as well as where you live. Not every area goes by the same cost of living. Should you be punished because you live in an area that has now become a high cost of living area — even if it wasn’t that way when you moved?
You need to always be thinking about your options as you go along. It’s tempting to just skip over things but the reality here is that you must ensure that you are thinking about the way you actually handle absolutely everything that comes to you after a loan modification.
First and foremost, you will need to make sure that your budget is going to be as strong as possible. It’s tempting to hope that you can just go with your gut, but very few people track every last expense they are making down to the penny. That would highlight exactly what’s going in and out of the house, and many people aren’t ready to face reality. Sorry if that sounds harsh, but when you’re under a lot of stress facing reality is usually not very high on your list of things to do.
So where do you really go from here? Well, you don’t want to find that you’re only looking at the numbers. Think about how you feel, mentally. Getting a modification can help you financially but only to the extent that you allow it to. If you are feeling trapped and helpless, you need to figure out where those feelings are coming from. Can you really survive on less income? Absolutely! You may have to change the way you spend, and you might have to even change the way you handle money in general but there is a beautiful life after loan modification.
Another thing that you might want to look at is going with a debt consolidation program, or at least looking into credit counseling. Learning more about personal finance is something that everyone can benefit from in one way or another. Why not look into all of your options? That would be the best way to really take advantage of everything you have going on in your life. Don’t give yourself over to anger or even depression, or play the blame game. It doesn’t matter how you got to this point, only that you move on for your family’s sake.