Many homeowners are considering changing their current mortgage to get a monthly payment that is more manageable. For a struggling borrower, the loan modification process is often frustrating and frustrative. Usually, a mortgage modification alters the original mortgage loan to include lower interest rates, longer repayment periods or fee cuts. This change is meant to make the borrower’s loan more affordable, and to avoid foreclosure. Get more info about Harbor View Funding.
The actual process of amending a loan varies from one lender to another, but most borrowers are generally given the following information.
- Training-The mortgage company has staff who manage every day improvements to the loan. You will grasp the adjustment process yourself or consult with a service company (or lawyer) who will represent your interests before you contact your lender. Employees of the lender are working after the lender’s best interests which may not be your best interests.
- Lender Touch-The process of changing loans typically starts by contacting the lender responsible for the loan. Such interaction can be made by the homeowner or by a service company working on the borrower’s behalf. Once you find the right person or team to manage your request you can be referred to several different people-be patient and persistent.
- Documentation-Such documentation will be needed for borrowers to begin the process. The required documents vary from lender to lender but generally include a letter of hardship describing your situation, current income (to show you can make the new loan payment), and a monthly budget showing your regular expenses. Also, lenders can allow you to complete an application form with your package of documents.
4. Negotiate-The condition of each borrower is different, and each lender has specific rules for changing their loan procedure. Because each case is different, finding new terms that are agreeable to both the homeowner and the mortgage company is crucial. The homeowner also wants to consider the terms and conditions of the revised loan agreement and the financial implications of those terms.