When the economy took a sharp dive several years back, many homeowners defaulted on their mortgage payments and faced foreclosure. Fortunately, some lenders were considerate enough to offer options so that borrowers can avoid foreclosure. One of these options is the home loan modification Groton CT lenders have implemented.
In a home mortgage modification program, lenders are required to present options to make it easier for borrowers to fulfill their financial obligations. Some of these options include refinancing the loan, extending the term, rolling arrears into the total loan amount and restructuring payments. All these are meant to make it easier for the borrowers to pay their arrears off and avoid foreclosures.
With the federal program Home Affordable Modification Program (HAMP), homeowners get more protection from foreclosures even after they had been delinquent on their monthly mortgage payments. Lenders are now required through this program to provide options to borrowers and help them prevent foreclosure of their properties. In return, lending banks and institutions who join this program are given incentive payments by the government.
Lenders are required to inform borrowers of the HAMP alternative before foreclosing on a property or before conducting a foreclosure sale of properties. Once the borrower gets approved and enters a mortgage modification program, the lender must cease all efforts to foreclose. Borrowers are required to submit documents for evaluation and sign an affidavit showing that they are currently experiencing financial hardship.
If you are in a situation where you have missed many of your mortgage payments, you should talk to your lender to know what your options are. You will, most likely be required to present documents in order to qualify for a home mortgage modification. Documents include payslips, tax returns, credit card statements, a list of assets that you own. You also need to write a formal letter explaining the reasons why you are unable to meet your financial obligations.
Remember that your lender would want to see you pay off your obligations. Thus, they can be quite flexible, especially if you have been their client for years. Consider your options and choose the best way that can help you meet your mortgage payments. Your lender will be happy to help you and may even thank you for your desire to settle your debts.
When you're ready to approach your lender with a home mortgage modification, you could consult an expert who could guide you through the whole process. Not getting your documentations completed could only mean a longer processing time which can make you frustrated. It is best to consult with a lending expert even before you face the possibility of foreclosure.
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.
In a home mortgage modification program, lenders are required to present options to make it easier for borrowers to fulfill their financial obligations. Some of these options include refinancing the loan, extending the term, rolling arrears into the total loan amount and restructuring payments. All these are meant to make it easier for the borrowers to pay their arrears off and avoid foreclosures.
With the federal program Home Affordable Modification Program (HAMP), homeowners get more protection from foreclosures even after they had been delinquent on their monthly mortgage payments. Lenders are now required through this program to provide options to borrowers and help them prevent foreclosure of their properties. In return, lending banks and institutions who join this program are given incentive payments by the government.
Lenders are required to inform borrowers of the HAMP alternative before foreclosing on a property or before conducting a foreclosure sale of properties. Once the borrower gets approved and enters a mortgage modification program, the lender must cease all efforts to foreclose. Borrowers are required to submit documents for evaluation and sign an affidavit showing that they are currently experiencing financial hardship.
If you are in a situation where you have missed many of your mortgage payments, you should talk to your lender to know what your options are. You will, most likely be required to present documents in order to qualify for a home mortgage modification. Documents include payslips, tax returns, credit card statements, a list of assets that you own. You also need to write a formal letter explaining the reasons why you are unable to meet your financial obligations.
Remember that your lender would want to see you pay off your obligations. Thus, they can be quite flexible, especially if you have been their client for years. Consider your options and choose the best way that can help you meet your mortgage payments. Your lender will be happy to help you and may even thank you for your desire to settle your debts.
When you're ready to approach your lender with a home mortgage modification, you could consult an expert who could guide you through the whole process. Not getting your documentations completed could only mean a longer processing time which can make you frustrated. It is best to consult with a lending expert even before you face the possibility of foreclosure.
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.