The subprime mortgage crisis that struck the United States a couple of years back has left so many homeowners feeling more depressed. Add the current economic situation of our country, and you will be having sleepless nights due to fear of losing your job and home. Unfortunately, the economic crisis seems to persist and studies shows that it will continue to rise come 2011. The fear of losing the American dream of homeownership is so real and borrowers from across the state are making every possible way to save their own home. One way to prevent bank repossession is through modification of loan, this is by far the most advantageous solution to your default mortgage. Currently, millions of American homeowners had their mortgages modified and there are millions of others applying for home loan modification.
Now how to apply for a modification of loan; contact your mortgage lender or servicer after missing payments or when you have received a foreclosure notice. Tell them directly about your current financial status while providing concrete evidence that will support your claim and then ask for options. Make sure that all your documents are ready before going to the mortgage company. Gather all pertinent data including your statement of assets and debt, credit reports, employment history, and record of income and expenses. Any mortgage related documents that seem to be of importance must be prepared prior to contacting your lender and asking for a modified loan. There are different types of home loan modification and your lender will change the terms of your mortgage depending on your situation. However, let us not forget that lenders are there to earn money and if you think that the new loan term is disadvantageous on your part, politely decline their offer. Search for a debt or foreclosure counselor that can help you decide on what to do next.
Asking for a professional advice will help you make a sound decision on what to do with your default mortgage. Do not worry; you will surely obtain a modification of loan once your lender realizes that he or she has to foreclose your property. Closing down one of their real estate properties will do no good to their image plus they will have to resell it in order to start gaining profits from their investment again. If you need foreclosure assistance, there are loan modification companies that offer home rescue services to troubled homeowners; contact them immediately to obtain help.
