Thursday 22 May 2014

Home Loan Modification Groton Ct Can Help You Save Your Home

By Marci Glover


During the past years when the US economy has suffered a serious setback, many defaulted on their home loan payments and faced the possibility of foreclosure. However, many were able to save their homes when their lenders offered options of restructuring their loans. Those who have properties in Connecticut have the option of applying for home loan modification Groton CT that can help them make their payments more affordable.

In a home mortgage modification program, lenders are required to present options to make it easier for borrowers to fulfill their financial obligations. Some of these options include refinancing the loan, extending the term, rolling arrears into the total loan amount and restructuring payments. All these are meant to make it easier for the borrowers to pay their arrears off and avoid foreclosures.

The government has devised a program called Home Affordable Modification Program or HAMP, which aims to help home owners pay their mortgage in time and be saved from the risk of foreclosure. Through this program, lenders must follow standards before they can foreclose on any property. They are also required to present alternatives to the borrower before foreclosure. In return, lenders who enroll in this program and make it easier on their borrowers are given incentive payments by the federal government.

Lenders are required to inform borrowers of the HAMP alternative before foreclosing on a property or before conducting a foreclosure sale of properties. Once the borrower gets approved and enters a mortgage modification program, the lender must cease all efforts to foreclose. Borrowers are required to submit documents for evaluation and sign an affidavit showing that they are currently experiencing financial hardship.

If you find yourself in a situation where you can no longer pay your mortgage on time, then you must apply for a home loan modification program. You would have to present documentary proof in order to be eligible. These documents include your latest pay stub, copies of your past tax returns, a list of your assets, and your current credit card statement. You may have to write a formal letter which details why you are currently in a financial bind.

Remember that your lender would want to see you pay off your obligations. Thus, they can be quite flexible, especially if you have been their client for years. Consider your options and choose the best way that can help you meet your mortgage payments. Your lender will be happy to help you and may even thank you for your desire to settle your debts.

When you're ready to approach your lender with a home mortgage modification, you could consult an expert who could guide you through the whole process. Not getting your documentations completed could only mean a longer processing time which can make you frustrated. It is best to consult with a lending expert even before you face the possibility of foreclosure.

Gather and submit your documents for evaluation. If you fail to qualify, then consider other options to get you out of your financial mess. One way is to request your lender to permit you to sell your property for an amount lower than what you owe.

Another option is to apply for a forbearance. This means requesting your lender to suspend your payments for a maximum 90 day period which will give you time to study your options. You will need to see an expert who is familiar with the process of home loan modification. Act fast in order to prevent your property from getting foreclosed.




About the Author:



No comments:

Post a Comment