During the past years when the US economy has suffered a serious setback, many defaulted on their home loan payments and faced the possibility of foreclosure. However, many were able to save their homes when their lenders offered options of restructuring their loans. Those who have properties in Connecticut have the option of applying for home loan modification Groton CT that can help them make their payments more affordable.
When a borrower applies for a home mortgage modification, the lender is now required by law to provide options that can ease up the borrower’s monthly payments. These options may include extending the loan term, lowering interest rates, refinancing the balance of the loan or rolling unpaid amortizations into the outstanding loan amount with lower interests. Some borrowers may not be aware that these options are available and are meant to help them save their properties from foreclosure.
The federal program, Home Affordable Modification Program or HAMP is designed to help qualified home owners who stand the risk of foreclosure due to delinquent mortgage payments. This program sets the standards that mortgage lenders have to follow to extend assistance to their borrowers. In return to this service, lenders receive incentive payments from the government.
There are certain standards that lenders have to follow before foreclosing on properties. One is that they must inform borrowers of several options available and encourage them to participate in a mortgage modification program. Once a borrower becomes eligible, the lender can no longer continue foreclosure proceedings on the mortgaged property. Borrowers must submit necessary documents and an affidavit proving that they are currently unable to meet mortgage payments.
If you are currently having difficulties to meet your mortgage payments on time, you should discuss this with your lender in order to understand your options. Your case will be evaluated and the lender will decide if you will qualify for a home mortgage modification. Present documents such as payslips, your latest tax return, a list of your assets and past credit card statements. Write a formal letter requesting your lender to be flexible and explain why you are currently in a difficult financial situation.
Most lenders are quite flexible, especially if you have been a valued client for many years. Do not wait until you get the notice of foreclosure. Instead, think of your options and talk to your lender to suggest a restructured payment method. Your lender will even appreciate your desire to repay the loan within your current means.
It may also be a good idea to consult a real estate mortgage expert who is familiar with mortgage modification plans. They may be able to help you prepare the necessary documents, negotiate better terms on your behalf and shorten the processing time for the lender to approve your request. These will make things easier for you and make the process less stressful.
Ask your lender if you are eligible for this program and make a list of the documents that they need. If in the end, you do not qualify for a mortgage modification plan, then you may have to consider other options. One option is to shortsell your property, which means you have to request your lender to allow you to sell your property at a lower amount than what you owe.
You may also apply for a forbearance or a suspension of your mortgage payments for a maximum of 90 days. So if you are in this situation, there are ways to get out of it. You need a good real estate and financial expert who can help you through your difficulties and find a way to save your property from foreclosure.
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