When your lender calls you or mails something to you, don’t ignore them. Keep in mind that they will be required to initiate foreclosure proceedings if they do not hear from you.
As soon as you possibly can, get in touch with your lender. You will want to discuss all possible options with them, should you be having trouble making payments. The longer you put off getting in touch with them, the fewer options you are going to have.
Put Together Relevant Documents Including:
- your latest income tax return.
- your monthly mortgage statement.
- data regarding monthly gross(pre-tax) income of your household.
- information about your savings and other assets.
- account balances on your credit cards, and minimum monthly payments due on them.
- information regarding any home equity line of credit or second mortgage on your home.
- monthly payments and account balances on your personal loans and other debts.
- a Hardship Affidavit properly completed that explains the circumstances responsible for any increases in your expenses or decreases in your income
Obtain Help For Yourself
Get the best foreclosure-avoidance counseling you can find. Be careful of any solicitors guaranteeing you a modification of your loan, or that charge large up-front fees, or any similar solutions to stop foreclosure.
Without the help of a bankruptcy attorney, you can petition for a loan modification. There are, however, some things only a bankruptcy attorney can do, such as contest mortgage line items which may be unreasonable, and review every loan document for legal violations.
Consider The Following Questions, As You Weigh Your Legal Options:
- What reasons caused you to miss your mortgage payments
- How have you attempted to resolve the problem?
- To back up your explanation for falling behind, do you have any documents?
- Is the problem temporary, long-term, or permanent?
- From getting back on track with your mortgage, what other financial issues may be stopping you?
- In both the short term, and the long-term, what changes in the situation do you see?
- Do you want to keep the home?
- What would you like to see occur?
- What sort of arrangements of payments would work for you?
In The Course Of The Foreclosure Prevention Process:
In all your communications with the lender, keep careful notes including the time and date of the contact, the name of the representative, the nature of the contact (postal mail, fax, email, phone, face-to-face), and the outcome of the communication.
Follow up with a letter to the lender
Any oral requests that you make. So that you can document when the lender receives it, send it by certified mail, “return receipt requested”.
Save copies of your letter and any documents included.
Because you may not qualify for certain sorts of assistance should you move out, stay in your home during the process.
Maintain Your Patience
To get the help you need before the relief can take 3-6 months of calls, letters, emails, faxes etc.
Keep on trying, even if your loan modification should be turned down. Federal and State Government agencies, as well as all the banks out there, are constantly implementing new programs to aid homeowners with bankruptcy and mortgage modification issues.