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Step 1
Make sure to know the state of your finances before contacting your lender. Determine how much income you're bringing in each month, how much you're paying in bills and where you can cut costs. Ask a nonprofit counseling service to help you put together this financial analysis for free. The counselor will also help to negotiate with your lender. Consumer Credit Counseling is a good place to start.
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Step 2
Next, contact your lender and have an idea what you need. Tell them what your situation is and what you can offer to help your situation.
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Step 3
Come up with some kind of an answer to the lender's question of how you propose to pay off the loan eventually. You're better off submitting an initial proposal. At least you've opened the door in the negotiation
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Step 4
If you think that your financial strain won't last long, ask the lender for forbearance, or postponement of payments, for a couple of months until your finances recover.
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Step 5
If you have an adjustable rate mortgage that reset and you cannot meet the higher monthly payments, request a loan modification from the lender. They will request a complete financial history from you, detailing your income and monthly expenses. Ideally, you should have some cushion in your income to justify a loan modification, if they switched your mortgage to a fixed-rate mortgage. Show them that you can comfortably pay a fixed rate mortgage through extra income from a second job, and you are more likely to get a modification.













Comments
azalinx said
on 10/26/2009 I would suggest getting a Forensic Mortgage Audit done. This company does them and they are not expensive. Saved me $550 per month on my loan mod!! www.mortgageauditsonline.com
yeasol89 said
on 10/16/2009 There is this professianl law firm that only deals with the laon modification and my father is about to pay $3000 for the lawyer. This makes me very nervous because there had been many law modification scams all throughout the states. Is lawyer really necessary to get the laon modification?
markvee said
on 10/5/2009 I've started a blog with my day to day experience trying to get a loan modification. I hope this helps!
http://californialoanmodification.blogspot.com/
jpflorida said
on 8/29/2009 Learn how to do a modification yourself
Visit http://www.mortgageloanmodificationsecrets.com
brinkts said
on 8/24/2009 There are a host of loan modification websites out there, but there are only a select few that allow you do it yourself. Check out www.modsolutions.org. They have an assisted option which basically means they will do the negotiating with the banks and all the related paper work. This option is pretty expensive but the do it yourself option is something to consider. You pay and it gives you access to their online system which you fill out step by step. It produces all of your professional bank ready documents for you to take to your bank and start the process! Pretty cool if you ask me.