For a homeowner who is going through a financially difficult time, getting behind in your monthly mortgage payments is something you do not want to do. This is why the process of loan modification has become so popular and in many cases is vital, so that a home owner can keep their home. Filling out all the paperwork and providing all of the information the bank requests can be a bit confusing though.
Mistakes made here can be the difference between ownership and foreclosure. The government and banks have said recently incorrectly filled forms are the number one reason for failure to be accepted by over a third of applications Take the time and read about some of the most common mistake people make when filing their loan modification paperwork.
1. Getting in contact with your bank too late. That’s right, getting a loan modification program can be a home saver, but if you wait too long to contact your bank and start the process you may find that your home goes into foreclosure before your able to make it through the whole application process. Do not be frightened by the situation and simply dismiss it. Take action as soon as you realize that your home is going to be in danger.
2. Not knowing what you are doing. As with anything, the amount of paperwork you need to fill out and the information requested such as monthly expenses, proof of income and proof of hardship have to all be taken into account and gotten together. Plus you need to be aware of your banks guidelines as well as the governments guidelines in this situation. Get help if you are not sure.
3. Falsifying information on your loan modification application. This may be done intentionally or unintentionally. Either way the result will end up the same, no loan modification for you. You need to be aware of exactly what the bank is wanting you to provide. Double check everything for mistakes.
4. Getting in contact with the wrong department at your bank. If you are already behind on payments, then more than likely there are calls coming in from the collection department wanting to know when you can make payment. Realize that in order to go through with a loan modification you need to speak to the correct department at your bank. It can get frustrating having to constantly change who you are talking to, but once you get the process rolling you should only have one, maybe two reps that you will speak with so that they actually know what is going on.
These are just a few things you can avoid when going through with a loan modification program that will help you to get through the process successfully. It would probably be in your best interest for you to contact a agency or company that acts like a intermediary for you and the bank. That way they can better explain to you what you need as well as make sure you are totally prepared for the process. Remember that this is not something you want to take lightly, your home is at stake.
If you are behind on your home loan or fear you will be get help now and take steps to keep your home from foreclosure.