Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Foreclosure, Frequently Asked Questions About Foreclosure & Divorce
Yes, but it makes it more difficult. It often requires a new signature for the spouse who is no longer living in the home. In a separation or divorce, the income that previously separated one household must often be used to support two. As separated or divorced spouses struggle to create a budget and make ends meet, they often find themselves facing foreclosure. When they do mortgage modification can be an option. Divorce is a stated grounds for establishing hardship under most private and government modification guidelines.
- Although separation or divorce is considered a viable hardship for purposes of mortgage modification, the crucial element to success is presenting a plan that shows that separation or divorce is a temporary hardship that can be overcome.
- Co-borrowers with separate households need to be extremely well-prepared in proposing budgets that are accurate and encouraging to lenders under a request for modification. It requires a well-planned, coordinated effort from both co-borrowers.
Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Foreclosure, Frequently Asked Questions About Mortgage Modification
Trial or temporary modification is the process by which a bank or lender grants an “interim” or temporary solution or forbearance, whereby they take lesser payments on a temporary basis. It is not a permanent solution.
To read more about Temporary Mortgage Modifications, click here.
Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Foreclosure, Frequently Asked Questions About Foreclosure Legal Options
When applying for a loan modification you must be prepared to document your financial hardship and ability to pay even a lower monthly mortgage payment in order to be successful. Most of the major lenders require the same set of documents to establish your financial condition and being fully prepared is more than half the battle.
Experienced legal counsel for borrowers know what banks need to see to create favorable loan modifications. Read our Foreclosure Process article
Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Foreclosure, Frequently Asked Questions About Mortgage Modification
Anyone at risk of default may be eligible for mortgage loan modification. While there are some guidelines for government programs and private loan modifications, anyone can attempt a loan modification. There is no requirement that your loan be in default. The real question is not qualification but success. There are many factors that go into a successful mortgage modification.
Success in mortgage modification requires a well-conceived financial plan, a well-documented hardship and the persistence to obtain a permanent mortgage modification. Read our Foreclosure Process article
Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Foreclosure, Frequently Asked Questions About Mortgage Modification
President Obama’s loan modification plan (the Making Home Affordable Program) is intended to offer a second chance to homeowners facing unaffordable home loans. It is a standardized plan that seeks to offer a way out of foreclosure for qualified homeowners. Participating lenders are given monetary incentives to offer the plan to interested homeowners. The plan seeks to lower the borrower’s mortgage obligation to 31 percent or less of their gross monthly income. Read about other options for Foreclosure
Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Foreclosure, Frequently Asked Questions About Mortgage Modification
Strategic default is a process whereby the borrower purposely misses payments in order to get the the bank’s or mortgage servicer’s attention. This is done in hopes that the lender will wake up and alter the terms of the mortgage, usually by lowering the interest rate and the corresponding monthly payment. Thousands of homes lost in America every week started with a so-called strategic default.
If there is nowhere else to cut in your budget and you’ll lose your home without a modification (1) get the advice of an experienced professional you can meet with face to face; (2) spend the time to fully analyze your budget today and in the future; (3) understand the exact change you need; and (4) save every missed payment. Read our Foreclosure Process article
