subject: Loan Modification Programs In Minnesota: what Are Your Rights When Things Go Wrong? [print this page] We all know that economic times are badWe all know that economic times are bad. All over the world home owners are starting to feel the pinch. The United States is no exception. Minnesota is way down the list of states starting to make an economic recovery. This means that, in particular, incomes and employment figures are just not going up as they should. This spells financial hardship. In spite of this, it is the number one state in its ratio to other states of numbers of home owners. Home owners in Minnesota are putting up a fight to save their homes.
Perhaps you are in the same position as so many others. You are wondering what you can do to save your home.
Here are five options that you could consider:
If you have lost your employment, suffered a financial crisis such as serious illness or loss you may be eligible for a partial claim on your insurance, should you have a policy to cover loss of income or earnings. This kind of insurance is always a very good idea and you may be able to claim an amount to cover part or all of the missed mortgage payments.
If your mortgage is insured you may be eligible for partial release. This should enable you to get an interest free loan to bring your mortgage payments current. You will have to repay this loan, but most likely at a later date.
You may qualify for reinstatement if you are able to prove that a bulk sum of money is due to you at a specific later date. This would have to be enough to cover all missed monthly payments as well as any fees and costs involved by the bank or lender. After that you will have to be in a position to resume your monthly mortgage loan payments.
If your lender feels that you have a legitimate reason for missing a payment or payments, they may agree to your increasing your monthly amount until you have caught up with your arrears and your account is current.
The bank or other lender may agree to allow you to continue your regular payments and repay the amount owing from the missing mortgage payment or payments at a later date if they have reason to believe that you will be in a position to repay this amount at a specific time. For example, if a bonus or legacy is due to you.
These options may help you over a very difficult financial crisis, but in order to get this kind of help you are going to have to be extremely transparent and sincere, have really good reasons for getting into this crisis and show pro-active enthusiasm towards planning and strategies for getting out of it. In short, your bank has plenty to lose and little to gain by foreclosing on you. They wish for nothing better than for you to get back on your feet and resume consistent repayments of your mortgage loan. However, to get to this point you need to keep in close communication with them.
