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Loan Modification Process - Understanding the Key Elements of How to Stop Foreclosure

Igor Mosyak

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 2 votes

The loan modification process can assist homeowners who are at risk of foreclosure to stay in the homes that they love. If you are experiencing temporary financial hardship and have fallen behind on your mortgage payments, then you need to understand the options that are available to you and your family. Talking with a professional foreclosure consultant can help you to understand your rights and to develop a solid action plan to stop your pending foreclosure.

Here are just a few of the topics that you can discuss with your foreclosure consultant:

Developing a feasible plan for loan repayment:

-You may have experienced a setback recently that has caused your lender to file a Notice of Default against you. It is OK. There is still time to intervene and stop the foreclosure from ever happening. Time is of the essence though. You need to be proactive and get in touch with a foreclosure consultant as soon as possible in order to maximize your potential to successfully stop the foreclosure. You can discuss realistic repayment possibilities and the foreclosure consultant can then approach your lender's loss mitigation team on your behalf.

A loan from the Federal Housing Authority:

-Your foreclosure consultant is an expert at helping you obtain a loan from the FHA to cover the delinquent amount of your mortgage payments and bring your loan current. There will be no interest or payments on this loan from the FHA until your mortgage is refinanced or your home is sold. You must be between 4 and 12 months behind on your mortgage payments in order to receive the FHA loan.

Loan modification:

-Your foreclosure consultant will work with your lender to get your loan modified and bring it current.

This will involve several aspects including:

-Partial payment of the amount delinquent;

-A letter of hardship explaining your legitimate reasons for falling behind on your mortgage payments;

-Relevant financial statements presented to the lender;

-Pay check stubs;


-Tax return form copies;

-Banking statements;

-and more as required by the lender. . .

It's important for you to realize that just because you desire to enter into the loan modification process doesn't mean that the lender will be willing. You must convince the lender that modifying your loan is in their best interest. It is the goal of the lender to minimize their own losses for the long run - nothing more. It is all just a singular component of the loss mitigation process to them. For that reason, it is also very important to act immediately. The loan modification process is time-consuming and needs to be initiated as promptly as possible in order to maximize your chances to stop your foreclosure.

If you are facing foreclosure and need assistance in dealing with your mortgage lender, there is help available. Just let us know how we can help and you can be on your way to successfully stopping your pending foreclosure and being able to relax again. We are always here for you.

Igor Mosyak is the founder of an organization dedicated to helping homeowners facing foreclosure. We provide a wealth of information on the whole foreclosure process and provide visitors of our website with FREE e-Book on “Stopping Foreclosure-Understanding Your Options".


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