Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Foreclosure, Frequently Asked Questions About Mortgage Modification
Any type of financial problem that happens to anyone in a household can be considered a hardship. Financial hardship is a very important buzzword to know when dealing with the world of mortgage modification. Many people often face foreclosure for reasons beyond their control. Many are underemployed or have family members who are underemployed. Their challenges can make it difficult to make mortgage payments.
To read more about how Financial Hardships are determined, click here
Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Foreclosure, Frequently Asked Questions About Mortgage Payments
Banks sometimes return payments to borrowers instead of cashing them. This very often happens if a loan payment is late. If this happens to your payments, you can still save your home. Many mortgage modifications are granted even after mortgage payments have been returned uncashed. Unfortunately, returned payments are often a sign that the bank is preparing to foreclose.
If a bank sends back your mortgage payment, seek immediate experienced advice.
If a bank returns a payment instead of cashing it, be certain not to spend the money! Saving uncashed, returned payments is often the key to successfully saving a home through governmental plans or private mortgage modification.
Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Foreclosure, Frequently Asked Questions About Second Mortgages
Although first and second mortgages may involve the same banks or servicing companies, most modifications don’t connect first mortgage defaults with second mortgage defaults, even if it’s the exact same lender. This is primarily due to the fact that lenders don’t look carefully at a borrower’s overall financial condition and instead take a short-term view by conforming your income numbers to your first mortgage only. This is a mistake, but it could work to your advantage.
Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Foreclosure, Frequently Asked Questions About Second Mortgages
Yes, Borrowers are often still eligible for mortgage modifications regardless of the existence of a second mortgage or equity line even if that mortgage is in default. Lenders often only care about granting modifications that provide them with government money, and not the homeowner’s overall chances for long-term success. The existence of the second mortgage can complicate the modification process. As a result, you should address the secondary problem with knowledgeable professionals, but you should not let it dissuade you from seeking a mortgage modification or agreeing to a written permanent modification of your first mortgage.
- Concentrate on your first mortgage and actively seek and agree to permanent mortgage modification that only addresses first mortgage problems.
- Although second mortgage default needs to be addressed eventually, don’t confuse your request for a first mortgage modification with discussion of your second mortgage problems. It all only serves to decrease your chances for a good modification. Address second mortgage problems later.
Mar 15, 2020 | Frequently Asked Questions, Frequently Asked Questions About Mortgage Modification
Principal reduction is extremely rare, but is the process where the lender agrees to take less than the borrower’s full obligation on their mortgage.
Read more about Principal Reduction During Mortgage Modification.
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.
