How to Get Mortgage Modifications After Losing a Job
Unemployment is common during tough economic times. When things don't improve quickly, some homeowners have trouble paying their mortgage loans. There's always the option of refinancing a home loan and lowering the payment. Unfortunately, losing a job disqualifies some homeowners, and mortgage lenders require steady employment. If unable to refinance, consider a modification, wherein you're able to obtain better mortgage terms without a "refi."
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Instructions
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Speak with your lender--the institution where you send monthly mortgage payments. Act quickly after losing a job to contact your lender for help. Express your desire to alter your mortgage term through a modification and discuss your eligibility.
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Have your income statements on hand. Mortgage modifications are purposed to help homeowners in distress. After losing a job, show proof of your current income: perhaps an unemployment check stub or bank statements detailing monthly deposits.
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Demonstrate an inability to pay your mortgage. Some lenders offer modifications only to homeowners who are 30 to 90 days delinquent on their mortgage. Research your lender's requirements.
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Write a hardship letter. Your hardship letter determines whether your lender will approve your modification after losing a job. State your reasons for seeking a mortgage modification, such as loss of income or employment. Provide specific details about your financial standing, and include information about your credit card balances, savings, tax returns and other loans.
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Tips & Warnings
Write an honest hardship letter. Lying about your income or trying to hide assets can disqualify you.
References
- Photo Credit mortgage image by hans slegers from Fotolia.com
