If you are like most struggling homeowners, then you've probably looked around online and maybe even visited a financial counselor for help paying your mortgage. Most lenders offer various repayment plans including home mortgage modification. It sounds intriguing, but you may not be sure precisely what is involved in home mortgage modification.
In this program, the borrower and the lender collaborate to change the terms and conditions on the original mortgage. By doing so, it is hoped that they can come to a mutual agreement on a new monthly payment that is both affordable for the borrower and profitable for the lender.
Though the basic processes for loan modifications follow roughly the same steps, every modification is uniquely tailored to your personal financial situation. After the bank receives your application for loan modification and the required financial documentation, a loss mitigation specialist is assigned to your application and will contact you with the results. Please be patient, as reviewing all applications may take time. If it is decided that you qualify for loan modification, you'll get approval and the negotiation process will begin.
Remember that getting a modified loan is by nature a compromise. Your bank will give a little, but you will too. The overall payment amount probably won't change by that much - it's likely that your loan will be extended a number of years so that your payment goes down but the overall amount stays the same. Remember that the purpose of modification is to keep you in your home and allow you to begin meeting your monthly payments. It is not a get-rich-quick scheme. It is for honest people who just want a clean slate to begin again.
If you're curious about home mortgage modification, call your lender and ask about their criteria for participating in the program. Getting approved for a modification might be the first thing you can do toward future financial stability.