American homeowners heaved a long sigh of relief when they heard about the Obama’s federal loan modification program thinking that they are finally saved from foreclosure. Think again, not all American families were granted with a modification of loan. As a matter of fact, only a fraction of the millions of troubled homeowners were awarded of foreclosure help by the government. While it is true that the government has been allotting billions worth of budget for loan modification programs and mortgage subsidies, we should know that there are millions of people in the United States needing foreclosure help especially in areas with high foreclosure filings. The government cannot reach out to everyone in need thus, families who are in the brink of losing their homes must work together to find other solutions.
Applying for a loan modification is quite simple. Once you are behind your mortgage, you should contact your lender or servicer explaining your current financial situation so that you can come up with new terms of loan payment. Once agreed, your lending company shall send you an information packet and a form that must be completely filled out. After, you may continue paying your loan under a new term. However, if you apply for a federal loan modification, the process does get more complicated and often results to miscommunication and chaos. It is utterly important that you try to settle your account first with your lender and try to convince them yourself in granting your application. If they deny your request, then you can seek for federal help.
Think carefully when you want to apply for a federal loan modification, actually you have to think wisely when taking legal actions in preventing foreclosure. The mortgage companies operate to gain profit, not to grant your American dream of homeownership. When you apply for a modification of loan, discern if the agreed new terms of payment are beneficial for you or not. Most importantly, know all the details of the loan modification program that you want to apply to so that you will know if it can save your home permanently or just another method to keep you paying longer. If the information given is too vague, contact a debt or foreclosure counselor in your state housing agency. These HUD approved counselors can help you decide if it the best for your mortgage or not without having to pay a dime.
