Your loan modification agreement
On the road of life, there are plenty of ups and downs. This is no different when it comes to your financial situation. In many cases, the loan agreement that you agreed to on day one of your home mortgage plan will not work for you in the future. The payments may be too high and you simply cannot make it. This is when you will need to see your financial lender or even better hiring a loan modification lawyer and come up with a loan modification agreement that can lower or change the payment plan to suit the changes in your life.
Unfortunately, the whole process is not as easy as simply picking up the phone, planning a meeting and changing the payments, especially if you have been skipping out on your payments for a little while. You will need a professional advice to modify your loan instead of foreclosing your home.
With the top ten tips listed below, the loan modification agreement process will go a lot smoother for everyone involved.
1. Be upfront. Honesty is everything. Be straightforward with your lawyer about the current situation. They are there to help. The sooner you tell them the truth and that you are falling behind, the better it will be. A lawyer is going to be less likely to accept your proposal and work with you if you have been lying for months and missing payments without an explanation.
2. Make a spreadsheet - a budgeting spreadsheet will not only help you but it can also demonstrate to the bank and your loan modification expert that you are ready to change for the better.
3. Gather paystubs - you will need paystubs to prove the income coming into the account. Together with number four, paystubs will also give a financial snapshot of your current situation.
4. Collect bills - bills and receipts will help demonstrate the outgoing money and act as proof that you need a modification on the loan.
5. Suggest a proposal - a proposal is what you believe you can manage when it comes to your monthly repayments. Of course, this will most likely be modified by the lender but it’s a start.
6. Consider changing interest rates – if you are on variable interest rates, then think about switching to a fix interest rate instead which keeps the interest at a same rate and can help with the payment.
7. Be patient and polite - the whole loan modification process is tedious and time consuming. Furthermore, you may have to jump through telephone hoops to get to where you need to be. Stay in control as best as possible.
8. Get assistance - there are loan modification lawyers that can help you through this tough time. They have the insider scope to the lending industry which means it’s possible to get you through the door and on your way to an approved loan modification agreement a lot faster. They can also help you balance your financial situation and assess what went wrong. Loan modification lawyers charge a fee for their service so be prepared to budget this in when considering the extra assistance. But, do not forget about one important thing; An experienced lawyer can make a much better deal for you, since they know who to talk to, they know what to say and they have been negotiating with lenders for years.
9. Show improvement - you need to demonstrate to the bank that it is not in their best interest to foreclose you. This means going the extra mile. You might have to get a part time job on top of your full time one or you may need to cut back on certain luxuries that you enjoy.
10. Be a team player - establishing a loan modification is a team effort between you, your lawyer and the bank. Play fair.