Steps During a Home Loan Modification
If you have failed to pay your mortgage for several months, your lender may initial foreclosure proceedings. If the foreclosure follows through, you will have to leave your home, even though you may still owe money on it when that time comes. Fortunately, you do have options that can help you save your home. One of the most common of these is home loan modification.
Obtaining a home loan modification is not automatic. You must ask your lender for the modification, and your lender must approve your request. This is a very daunting task and many homeowners do not even know where to begin. Below, our Florida home loan modification lawyer outlines the steps to take.
Create a List of Specific Expenses
When requesting a home loan modification, you will have to show your lender how you are spending your money. Create a financial spreadsheet that outlines all of your expenses, even if you have not been able to pay all of them recently. Even if your income is not enough to cover your monthly bills, still include all of your expenses within the spreadsheet. The purpose of the spreadsheet is to show the lender that you are under serious financial strain.
Additionally, if you have been trying to find ways to cut back on expenditures, you should include these within the spreadsheet, as well. This can show that you have been trying your best to pay all of your bills, but that you are still finding it extremely difficult.
Contact Your Lender
Again, you will need your lender’s approval to obtain a home loan modification. The next step is to contact your lender and ask if you can apply. Different lenders have different qualifications and eligibility requirements so it is very important to ask the lender about these to determine if you qualify. You can then ask your lender for an application. When contacting your lender, be prepared for a long phone call. Sometimes, this initial call can take several hours so be patient and keep your emotions in check.
Submit Your Application
When completing your application, it is critical to ensure that it is accurate and complete. If there are mistakes or it is incomplete, it can delay your home loan modification or ruin your chances of obtaining one. Your lender may also require a hardship letter outlining why you were unable to make your mortgage payments and how a loan modification could help.
Wait for the Response
Unfortunately, after you have taken the above steps, there is nothing left to do but wait. You should hear back from your lender within 30 to 90 days. Remain patient and try as best as you can to keep current with your mortgage payments during this time.
Our Home Loan Modification Lawyer in Florida Can Help You Through the Process
Going through the loan modification process is overwhelming and stressful. At Nowack & Olson, PLLC, our Florida home loan modification lawyer can help you through the process and communicate with the lender on your behalf so the process is as easy as possible for you. Contact us to schedule a consultation and to get the legal help you need.
Source:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0702/0702.html
