Finance & Investment Articles - Stop Foreclosure - Learn How Loan Modification Can Help


by DAVID PIT - Date: 2009-12-31 - Word Count: 499 Share This!

With the recession still tightly gripping the US economy, each day an increasing number of people find them selves dealing with the prospect of foreclosure. Most of these people are dealing with financial adversities, so they cannot meet their monthly mortgage payments. Unfortunately, most of these people simply accept foreclosure as an imminent and unavoidable fate; what they fail to realize is that a foreclosure will have far reaching consequences on their credit score. On the other hand, there exists a feasible solution in the form of home loan modification which can be availed of easily.

A mortgage modification is the process of renegotiating the terms of an existing loan to make the monthly payments more affordable. There are several recourses that the bank and borrower may take to achieve this goal like reducing the interest rate, increasing the loan tenure or writing off a part of the principle amount.

With the sub prime crisis at its peak and no respite in store for the real estate market banks cannot find buyers for their foreclosed homes this means that they cannot recover their dues even after taking your home away from you. On the other hand when they grant a borrower a mortgage modification they can be sure that they will at least recover their dues albeit at a lower interest rate. And this simply is a more viable solution for most lending institutions.

In order to get a home loan modification you will need to put in a significant amount of paper work which will start with the drafting of a mortgage modification hardship letter. This letter will contain information about your current financial condition, the causative factors, the steps that you are taking to combat the situation and what are your expectations in terms of a home loan modification.

You will also have to include other relevant documents like your pay slip, tax returns and others that will help the bank to ascertain that you are indeed in financial trouble and are thus eligible for a mortgage modification.

In your home loan modification hardship letter you will try to convince the bank that you are a responsible and trustworthy person who intends to repay his loan but certain financial difficulties are stopping you from doing so.

If you are considering mortgage modification, you should really look into 60 minute home loan modification. It is a great resource that contains a lot of important information about the process of applying for a mortgage modification. It was created by a loan modification expert who has modified numerous home loans. The kit included a professional hardship letter outline, and one on one support in case you have any questions. It is a must have for homeowners.

If you want to learn more about home loan modification and 60 minute loan modification visit homeloanmodificationfaq.com. The website has plenty of free resources that will help you to modify your mortgage. Click Here if you want to save your home from foreclosure.


Related Tags: stop foreclosure, mortgage modification, loan modification, home loan modification

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