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. Continue reading
The economy has been taking a dive for a while now and things don’t appear to be getting better. More people than ever are facing foreclosure if they do not receive some type of loan modification help. Even those who are now current on their mortgage payments realize that they may soon fall behind due to lay off and job losses. If someone is unable to refinance the loan for any reason, there are several options that may be available.
If you are already behind on payments you can speak to your bank about working out an arrangement to get current with your payments, say, within the next year. The lender has the final say but this option is open to explore. In fact, until recently, you had to be behind on payments in order to get any type of loan modification help. Of course, this describes a lot of people with the current economic situation. There are estimations that up to 6000 or more families will lose their homes in the next several years unless they are offered help.
Loan modifications come in all sizes and shapes so there are options. The latest help available is in the form of the new Affordable Home Program. This program is available to those who are not behind on their payments but still need to have their payments and interest lowered in order to stay current. The new program will also help those who owe more on their home than it is currently worth. Property values have declined sharply so many who would not qualify under existing programs may now qualify under the White House Plan.
Regardless of a home owner’s situation, every avenue should be explored. Whether you are behind on your payments now or not you could be facing problems in the near future. You can speak to your bank or loan institution or you can find out more about the Affordable Home Program. There is supposed to be new information available as well as loan counselors to help answer questions about the program. Continue reading