Going through a foreclosure on your home could be a devastating event, but there is a way you can try to prevent this, even if you have already received foreclosure documents from your mortgage company. The method you can try is called a home modification loan, which is a method that allows you to set up a new home loan with brand new terms. Getting approved for a home modification is not always easy, but here are three tips that might help you improve your chances of success.
Hire a lawyer
The first tip is to hire a lawyer. Yes, this will cost you some extra money, but it could help you avoid losing your home to foreclosure. When you hire an attorney, look for one that has experience in home modification loans. You can usually find one like this by calling real estate attorneys.
Your attorney will negotiate for you, and he or she will walk you through the entire process. This is the best way to ensure that you submit all necessary documents to the lender, and your attorney will make sure these steps are all completed by the due dates. For more information about taking the legal route, contact an attorney such as Jack W Hanemann, P.S.
Draft a compelling hardship letter
Your attorney will also be there to help you draft a compelling letter of hardship. A hardship letter is a necessary component of a home modification, and this letter is basically a plea to the lender to consider modifying the loan. It should include:
- Your personal information, including your loan number and name
- The reason you are experiencing problems paying your current mortgage payment
- The reasons you will be able to pay the loan if the terms are changed
- The exact thing you are requesting, such as a drop in interest rate or extension of loan payments
These are all important factors you must include in the letter. Your lawyer will help you create this, and he or she will send it to your lender for you.
Develop ways to improve your financial situation
One key part of the hardship letter is an explanation of how you plan on repaying your loan if it is modified. To have enough money to do this, you might want to look into a credit counseling plan to help you reduce other debts you have. You could also look into getting a new job or a second job to help you earn more money.
With the right steps and a qualified real estate attorney, you may be able to convince your lender to modify your loan. To learn more, contact a real estate attorney in your city.