How to Request a Loan Modification in Fort Worth, TX
Every other person is struggling today in financial terms. In this situation, if you are falling behind your mortgage repayment, there’s an alternative to foreclosure, and that’s a loan modification. Scroll ahead for a detailed analysis of loan modification and how it can benefit you so that you can avoid foreclosure and save your property. Most of the banks prefer to bring the homeowner back on track by providing alternatives to avoid foreclosure. Loan modifications are designed in favor of the borrower to keep the borrower from defaulting in the future. Eligibility for a loan modification may vary, but typically you need to show the evidence that you have a valid reason for the default. And the financial hardship has to be backed by some long-term illness, disability, death of family members (and significant loss of their income), Natural or declared disaster, uninsured loss of property, a sudden increase in housing costs, divorce, including hikes in the property taxes.
To apply for a loan modification, reach your lender’s loss mitigation department with required documents that include a hardship letter, your current financial information, tax returns, proof of income, a recent financial statement, estimation of property value, bank statement, evidence of hardships such as (medical bills or divorce papers) Lenders will review your entire credit history considering your debt-to-equity ratio all these factors determine whether you qualify or not. When you apply for a loan modification, you can introduce an independent third party loan modification company or a HUD- approved housing counselor instead of dealing directly with your bank or lender. A loan modification company charges for fees, whereas a HUD-approved housing counselor provides their services for free.
HUD-approved housing counselors are a government agency, but they do the same job as an independent loan modification company. Both represent homeowners through the modification request process, assisting in arranging the paperwork or negotiating the terms with the bank. They have the means to counter for the rejected applications and file appeals. Working with a HUD-approved housing counselor is a pocket, friendly, and legitimate option. But if you still prefer an independent loan modification company. Check for verifiable experience in getting loans modified and negotiations with the banks. It would be best if you compare their fees with other companies. Just to make sure that you don’t have to spend any extra penny in these challenging times. It’s also important to know that the banks or servicing companies are working in lenders’ best interest. Sometimes you may receive an offer that isn’t affordable. Adjustable rates or step-up plans provided by independent companies rarely work. Moreover, lenders offer a modification plan that works best for the long-term. There’s always an option that works best for both parties. The one that agrees with the bank’s bottom line and is affordable for you. If you need any assistance, remember to select an experienced, qualified, and licensed counselor for the job. And lastly, don’t feel pressured to accept the first offer that lands on your plate. Explore the options of adjustable loans. Check thoroughly and make calculations so that you don’t pay more than the loan’s lifetime.