If you're struggling to meet your mortgage obligations, you're not alone. Many people are facing economic hardships right now. The Covid-19 pandemic and inflation have created trying times for just about everyone. If you're behind on your mortgage payments, you might think that foreclosure is your only option. Luckily, that's not the case. A loan modification is an option that's available to you as well. Modification lets you change the terms of your mortgage. The modified terms are better suited for your specific financial needs. In many cases, a loan modification will lower your monthly mortgage payments. If you're worried about losing your own, read the list provided below. Here are four tips that can help you through the loan modification process.
Contact Your Loan Servicer
If you're falling behind on your mortgage, don't avoid lender phone calls. You need to let your lender know that you've fallen on hard times. Early contact is especially important if you want to apply for a loan modification. The sooner you contact your loan servicer, the sooner you can request a loan modification. The first step in that is to request a loss mitigation application. If you wait too long to contact your loan servicer, they could start the foreclosure process. If that happens, you might not have enough time to complete the modification.
Submit a Complete Application
If you need a loan modification, the best thing you can do is submit a completed application packet. You might think that submitting a partial application will get the process started faster. That's not the case though. Your loan servicer won't start the modification process until they get a completed application packet from you. To ensure speedy processing, be sure to submit your completed application as fast as you can. It's also important that you include all additional information your servicer asks for. Some of that information includes pay stubs, bank statements, and your hardship letter.
Maintain Open Communication
Once you submit your application packet, you might think you can sit back and wait. That's not quite right though. Your loan servicer might need clarification about your application. Or, they might need additional information. Because of that, it's important that you maintain communication with your loan servicer. To avoid delays, contact your servicer a couple of times a month for updates on your application.
Schedule a Legal Consultation
If you're applying for a loan modification on your mortgage, don't forget to speak to an attorney. An attorney can help you avoid some of the mistakes that can derail your loan modification. They can also provide legal advice if your loan servicer tries to start foreclosure proceedings while you're applying for a modification.