Decrease Your Housing Payment By Using A Mortgage Modification

By: Nick Adama

If you want to lower your family's expenses, then debt consolidation or debt settlement are both great methods of lessening your unsecured debt payments. But having your mortgage modified can also lower your house payment. Because your mortgage is usually the highest monthly payment, it only makes sense to have it lowered as well. This is extremely easily accomplished with a loan Modification.

A loan modification is when your loan servicer or lender lessens the mortgage payment by reducing your interest rate, forgiving some of the amount owed, and/or extending the term of the note.

A loan modification can drastically reduce your house payment and has helped 1000's of homeowners evade foreclosure. Loan modifications can not only lower your monthly expenses, but it can take a house you were once upside down in, and reduce the payoff amount to bring it back to 100% LTV (Loan To Value). This allows you to retain the house at an affordable payment and you will no longer be making payment on a home that is not worth the price.

Even though most loan servicers will require you to be behind on payments prior to allowing a loan modification, it's not always required. If you are not behind on your mortgage payments, a loan modification is possible,but you will need documentation, so you can show proof of a hardship. This hardship will show that reducing the monthly payment is mandatory; without a reduced payment the payments will not be made in the future. Even though it will require a lot of time and negotiation with your servicer, If you can prove these facts, the modification can be approved.

If you are wanting to evade foreclosure, or if you want to get a loan modification, you need to begin by talking tocontacting your lender or mortgage servicer and trying to get their helpcooperation. Depending on your circumstances, you may have a loan modification approved on your own, by simply calling your bank. But in most circumstances, it's advised that you hire an experienced negotiator to work with your lender. By hiring an expert loan negotiator, you will know that your loan modification has the best chance of approval.

Remember these instructions when you attempt to get a loan modification:

1. Always fax your servicer a complete loan mod package; partial paperwork is the number one reason loan modifications are rejected.

2. Time is of the essence! Although loan modifications can happen can happen very quickly, the average time is about 1-2 months. Take action immediately, so you have plenty of time.

3. If a customer service agent at your lender is not any help, try calling back later to speak to a more helpful operator. Different agents may provide more assistance and be more likely to approve a loan modification.

4. Never act rude or yell at a operator at your servicer. You will need their cooperation to get your modification done, so be as considerate and professional as possible.

5. Follow up on a regular basis and make sure all faxes and communications are added to your file. We recommend contacting your bank/servicer on a weekly, if not daily basis to confirm they have everything they need toget your case approved.

If you've encountered financial difficulties that have caused a loss of income or may cause you to face foreclosure, then modifying your mortgage will help. Take action immediately by talking to your servicer to apply for your modification.

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Nick publishes articles on the ForeclosureFish website to provide foreclosure help and advice to property owners in need of assistance. The site examines numerous ways to save a home, including deed in lieu of foreclosure, filing bankruptcy, short sales, defending foreclosure in court, and others. Visit the site for an e-book explaining the basics of foreclosure and how to stop the process:

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