subject: Help For Distressed Homeowners Facing Foreclosure [print this page] The economy has pushed many hardworking families paying mortgages underwater gasping under the pressure of a foreclosure. It is the all-powerful weapon that terminates all rights of the homeowner thereby abdicating their property to the lending institution. The basis of inability to pay the mortgage may be varying like losing a job, may be a pay decrease due to the failing economy, high interest rates, sudden medical expense or a death of a bread-winner.
Homeowners losing their homes is not an isolated situation and the latest stats points to a whopping 4 million or more this year. The government is trying to pitch in with the Home Affordable Modification program (HAMP).
The question in many homeowner's mind these days is how to stop foreclosure.
The best available is a loan modification. This helps the homeowner set up a more affordable payment either by lowering the rate of interest or by increasing the term period of the loan. Lenders are not happy when people lose their homes. Lenders make their money by lending money and therefore would prefer to have mortgage loans paid. Therefore, most lenders are tickled pink to work with homeowners to establish a repayment plan to keep people in their homes if and when possible.
The mortgage modification has the concurrence of both borrower and lender to the loan and generally the lender examines the background of the borrower before creating a new or better loan term. The conditions that are looked into include the current financial problem of the borrower, the ability to pay the loan, the amount that is owed, the equity in the property and if future positioning favors regular payment. There is no doubt that the financial condition of the future will be a deciding factor. The borrower would have to substantiate their mortgage payment history to prove there was a excellent earlier record.
Renegotiating a mortgage is absolutely possible if the borrower effectively conveys their situation through an application and a concise supporting letter that includes the reasons of the present financial trouble and a plan to alleviate the problem. These documents should be supported with income statements and or income tax documents of the borrower.
Save yourself from the headache of a foreclosure. Loan modification is the best alternative for the sunk, there is light at the end of the tunnel.
