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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.
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
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
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
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
Never skip a mortgage payment without saving the money. Many homes lost to foreclosure begin with an intentionally missed payment “to get the bank’s attention.” You do not have to be late on your mortgage to qualify for a Mortgage Modification program. Never miss a payment on purpose or rely on strategic default without seeking experienced guidance in advance. Read our Foreclosure Process article
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