Home Loans Modification Tips
It is not a new concept that a person can encounter problems paying for their Chicago home loan. However, instead of panicking or sinking into depression, borrowers still have an option – a loan modification.
The United State Department of Housing and Urban Development (HUD) define a home loans modification simply as, “a permanent change in one or more of the terms of a Mortgagor’s loan, allows the loan to be reinstated, and results in a payment the Mortgagor can afford.”
Thus, the person struggling with their Chicago home loan is offered a way to afford paying their obligations through home loans modification. That may sound too easy, right? However, it must be kept in mind that there are countless other individuals who are also looking at home loans modification as their savior. To be able to enjoy the benefits of a loan modification, the borrower has to qualify first for a Chicago home loan modification program.
Below are the top tips on how to get a loan modification:
Do Not Delay
If a borrower wants to avail of the benefits of a loan modification, they have to apply early.
In the past, only borrowers who have consistently defaulted on their Chicago home loan payments or were already subjected to foreclosure proceedings, were allowed to get home loans modification. These days, however, borrowers do not have to be in such dire financial situations before being allowed a loan modification.
Applying for a Chicago loan modification early will also give your lender the impression that you are a responsible borrower, trying to avoid future problems (that would invariably also involve them).
Find Out Who Owns Your Loan
If there is more than one financial institution that have an interest on a borrower’s Chicago home loan, then things could become complicated. This multiple lender situation makes it harder for a loan to be modified.
To avoid such a problem, it is advisable for a borrower to find out at the onset who owns their loan.
Be Honest and Accurate in the Hardship Letter
A hardship letter is required when applying for a home loan modification; Chicago lenders refer to what a borrower puts in their letter when considering a home loan modification request.
Lenders will try to verify the facts in this hardship letter. So, it is important for the borrower to be honest and accurate when giving the facts.
Negotiate the Best Deal
A borrower who wants a loan modification should not act like they are ready to settle for any deal thrown their way. Remember that you still pay good money on a home loan modification, so be sure to negotiate for the best deal.
Consult a Loan Modification Attorney
Problems concerning a borrower’s Chicago home loan and home loan modification problems require the help of Chicago based professional. The risks are great, and one could fall into deeper financial debt if they are not careful.
To avoid the many pitfalls that come with a loan modification process, one is advised to consult with a loan modification attorney. A loan modification attorney can help a borrower put together all the paper work required and can guide them throughout the whole process—and not to mention, save the borrower lots of money.