Ten Steps to a Loan Modification, Part 2 of 2
Over the past six years, the news has been full of the hardships faced by homeowners who were enticed into mortgage loans that exceeded the financial means of the household and imposed steep interest rates on the family that led to payments that exceeded the one-third of income that forms the basis of the home mortgage industry. These homeowners are now faced with either getting a modification of the mortgage loan or facing either foreclosure or walking away from the home.
In addition to the first five suggestions for the homeowner, previously posted, there are five other suggestions that a homeowner should consider:
6. Make sure that the right people are involved in the negotiation process. If the homeowners do not get the decision-makers involved in the modification discussions, they could be dealing with collections personnel, who do not have the authority to negotiate a significant modification. An experienced loan modification attorney will ensure that the right person is involved in the loan negotiation process.
7. Be realistic and be prepared to wait for the right results. Once the request for the loan modification has been made, the lenders are going to take the time to review all the financial documents and justification for the modification in order to make a decision. Most often, it is the interest rate that is adjusted down. Depending on the circumstances, the rate might be reduced as low as two percent (2%) in order to achieve an affordable monthly payment. The homeowner must be certain that the monthly payments are realistic or they will find themselves in trouble again. Frequently, the lender does not want to deal with a foreclosure on a home where the value is much less than the amount due and owing on the mortgage, so they are willing to negotiate to get to a level where the homeowner realistically can make the payments. Many loan modification negotiations will last from 30 to 90 days.
8. Remain calm and cooperative throughout the process. Although it is tempting to blame the lender for the hardships that the homeowner has faced, it is important to understand that many different businesses were caught up in the same situation as the individuals who undertook the mortgage loans. By remaining calm and willing to continue negotiations, homeowners can obtain the best results.
9. Do not be afraid to get other people involved in the process. Although it is important to retain an experienced attorney, it also may be necessary to contact local politicians who understand the impact that mortgage foreclosures have on their districts. These politicians may have some influence on the lenders and can influence them to reach a better resolution.
10. Document everything. It is critical for a homeowner to maintain records of every communication and step in the negotiation process. A person involved in the loan modification process should maintain records such as a diary of dates and events. Any letters or other mailings should be sent with a record of receipt and all documents should be copied. By following these steps, the homeowner can reproduce any records that are lost or misplaced during the negotiation process. A good loan modification attorney will ensure that this is done.
The loan modification process can be protracted and frustrating at times, but when it works, a homeowner and his family can live in their home without fear of foreclosure. The attorneys at the Law Offices of Georgette Miller &Associates, P.C. have the skill and the commitment to guide homeowners through the loan modification process in order to reach a payment schedule that works for the family. In order to assist clients throughout the Northeast and Mid-Atlantic region, the law firm has offices in New York, New Jersey, Pennsylvania, Delaware, Maryland, and the Metro Washington, D.C. area. We are dedicated to fighting to get the results that you need. In order to schedule a time to discuss the problems that you have with your mortgage loan and how we can help reduce your monthly payments, please call us at 1-866-964-6529 ((866) 964-6529).