We may be a decade out from the housing market crash of 2006, but there are still many Orange County homeowners who are at risk of losing their homes. If you have fallen behind on payments or are in danger of missing payments, it is crucial that you act quickly. There are a number of options that could help you protect your home including a modification of your home loan.
What is a Loan Modification?
Mortgage modification is an opportunity to adjust your payment plan so that you can continue to make payments and stay in your home. Loan modification options are typically reserved for those who are facing a major financial hardship because of a life-altering event, but anyone who finds it impossible to continue making payments may qualify. A successful loan modification could result in a restructuring of your loan repayment plan so that you can afford the payments.
What Can a Loan Modification Program Do for My Family?
There are many ways in which you can modify your loan so you can stay in your Orange County residence. Some loan modification programs allow homeowners to temporarily suspend their monthly mortgage payment, to extend their repayment schedule, and to at least temporarily reduce their interest rates. During the modification process, it may be possible to extend the term of the loan or to pursue federal funds to help you cover past due amounts.
What Do I Need to Receive a Loan Modification?
There are many forms that you will have to fill out including a Borrower Financial Information form and a Borrower Authorization to Obtain Information form. Gather two months of pay check stubs, documentation to verify your supplemental income, federal tax returns from the past two years, and bank statements for your checking and savings accounts. You may also need utility bills and a current homeowners insurance declaration page. Last but not the least, you will need a hardship letter explaining your financial hardship. This letter will have to explain what has changed in your life to make your current payment plan unsustainable.
Do I Need Help?
An Orange County real estate attorney can guide you through the process of receiving a modification on your home loan. Without legal guidance, your request may be denied and you could be at risk of losing your home. It is best to discuss your options with an attorney who has a proven track record of helping with loan modifications in Orange County.
McFarlin LLP can help. Contact us today.