In today’s housing market, selling a home is not the sure thing that it was less than a decade ago. You may want to move because of work obligations, family concerns or just because you want to keep your housing costs within your budget, but in reality the desire to move and the ability to sell a property in a timely fashion on the open market often do not necessarily occur in conjunction. But the facts are out there: some people are making it work. So how can you optimize your chances at making loan modifications or foreclosure alternatives work for you? The answers are surprisingly simple, and we’ve listed four of the easiest below. Remember, though, that nothing in today’s real estate market is guaranteed and every situation is unique. These are simply things that we know have worked for others in distressed home ownership situations and we are not offering advice on any specific situation.
- Be Prepared
If you want to prove that you need/deserve/are-able-to-pay-on a modified loan, then you need all the documentation that you can get your hands on that shows that you are a good credit risk who is in a bad situation. Lenders do not want to modify loans that are performing. However, if you can show that your loan is in imminent danger of going into default, you may have a chance. Make sure that you have tax returns, expense records, proofs of payment and documentation of debts. You need everything that you can get your hands on to demonstrate that a) you will continue to pay your loan if the changes are made; and b) that you may not be able to continue paying in your current loan. It’s tough, so be ready to delve into the minutia. - Make Many, Many Copies
Let’s face facts: your lender is probably going to lose your paperwork. And in the end, if they lose it, you’re still the one who pays the price. So make lots and lots of copies and be prepared to send them over and over again and make contact on your own with the people who shouldhave received those documents to verify that they did, indeed, arrive. And once you’ve verified this, make a copy of that too! - Look Out for Bad Advice
There are a lot of con artists out there selling false hope to distressed homeowners. Keep an eye out for fraudsters. However, you also need to keep an eye out for well-meaning but misinformed individuals who will give you advice about intentionally defaulting on your loan. It may be true that lenders do not like to modify loans that are not in default. However, it is not legal for a lending representative to tell you to default, nor is it their responsibility to save your house for you if you take their advice. Document all communications and be very, very wary if someone tells you to stop paying your loan, regardless of who they may be. - Ask for Help
There are many avenues for people who want or need to find foreclosure alternatives or methods of loan modification. It’s okay to ask for help. Get as much information as you can from housing counselors and find out if you qualify for any special programs or assistance. However, as we said before, be very careful about taking advice. Document where you got the advice and remember, whatever happens, it’s your home on the line and ultimately you who will be held responsible for the decisions that you make about your mortgage.
What are your best strategies for making loan mods and foreclosure alternatives work?
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File complaints at “helpwithmybank.com” The Office of the Comptroller and Currency oversees the large banks. You will get action from the office of the president of your bank. People should demand that all OPTION ARM LOANS and PREDATORY LOANS should be MODIFIED, no matter if it’s NON OWNER OCCUPIED, PRIMARY or INVESTMENT. We the people are ENTITLED to be modified out of the predatory loans due to corruption within the banks, brokers and systems that allowed it to happen in the first place. Fight for your property and don’t give it away.