Is There Such A Thing As Free Loan Modification?

Is There Such A Thing As Free Loan Modification?

If you are struggling to make your monthly mortgage payments a free loan modification may mean the difference between being able to stay in your home and losing it to foreclosure. A loan modification can significantly reduce your monthly mortgage payments and make it more affordable for you. Your lender may agree to lowering your interest rate, extending the length of the loan or may even forgive part of the principal. This may sound like great news but you may be wondering how you can possibly get the help you need to successfully obtain a loan modification.

There are loan modification companies that offer their services to help you prepare the necessary documentation and negotiate on your behalf with your lender. However these specialists can be quite expensive and usually require an upfront fee. If you cannot make your monthly mortgage payments and are struggling with your other bills you may be wondering how you can afford a specialist to help you with your loan modification. The good news is there is such a thing as a free loan modification.

A free loan modification is when you deal with the lender directly and negotiate your own loan modification agreement. You will need to become thoroughly familiar with the loan modification process, but it is possible to successfully negotiate a loan modification on your own.

The first thing you need to do to secure a free loan modification is to contact your lender's Loss and Mitigation department. These departments have been specifically set up to help homeowners like yourself who are having a hard time meeting your monthly payments and need to have your loan modified. The Loss and Mitigation department should be able to provide with what the qualifications are for their loan modifications, loan modification application forms, and explain to you what documentation they require.

The next step in your free loan modification process is to prepare your case and your financial documents. You will need to write a persuasive loan modification hardship letter to show why you are having difficulty meeting your monthly payments. Keep you letter short and be honest and direct. You will also need to gather documents that show proof of your income, an accounting of your monthly expenses, and a budget showing how you will be able to pay your monthly mortgage and meet your other monthly expenses if you receive a loan modification.

A free loan modification requires you to roll up your sleeves and get to work. Just remember all your hard work can really pay off and prevent you from losing your home to foreclosure.

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