Getting a loan modification on your home is a great way to save money and protect your home from foreclosure. Many Orange County homeowners have even been able to reduce their monthly payments before they begin to fall behind on payments. However, a number of local homeowners have also lost a lot of money because of unscrupulous loan modification companies that take advantage of distressed homeowners.
If you are having troubles making your monthly mortgage payments, it may be time to research your options. A loan modification may be the best solution available. A loan modification is the reformation of your agreement. During the modification process, it may be possible to cut the interest rate and extend the length of the loan. These types of changes will decrease the amount of money you have to pay each month. For example, if you extend your mortgage by 10 years, it could reduce your monthly payments by 15 to 20 percent.
If this sounds ideal for you and your family, here are a few tips to consider:
- Start now. Loan modifications are no longer only for those in the foreclosure process. Do not wait to be in default before applying for a modification.
- Seek professional help. Negotiate the terms of your loan with the help of an Orange County loan modification attorney, who will have the experience and expertise necessary. The bank or lender have it in their best interest to make a deal that benefits them. Your attorney will have your best interests at heart.
- Learn about your lender. Your present lender is probably not the same lender who gave you your initial mortgage. Loans are regularly sold to other companies. You will have to conduct some research to determine who currently owns your loan.
- Gather your documents. You’ll need your monthly statement, your most recent pay stubs, your last couple federal tax returns, bank statements, information on income sources, a utility bill, and a number of other financial documents.
- Get a great hardship letter. You also need a clear and concise letter that explains your financial situation and why you need a modification.
Please be aware that there are scams out there. If you are asked to pay upfront fees, that could be a red flag that you are being scammed. Use caution and don’t be afraid to schedule a consultation with an experienced Orange County loan modification attorney.