When mortgage problems arise, some individuals take the wait and see approach, simply because they have never been faced with this type of problem before. Others, due to embarrassment, mental stress or feelings of inadequacy, put the problem off for as long as possible, which can lead to a situation that can’t be helped. According to medical studies reported by USA Today, facing a foreclosure takes a huge toll on a individual’s mental and emotional well being.
If you’ve recently experienced a change in your level of income, or a higher interest rate has kicked in on your mortgage payment, there is help. Foreclosure does not have to be a part of your future.
Don’t make the mistake of waiting. There are many more options available to those who act quickly when trouble arises. Face your fears and educate yourself about the two big questions you must face:
What kind of options are available to you and who can you trust to guide you in the right direction?
Let’s look at the second question first. The best way to receive the help you need is by working with a loan modification professional. There are countless stories of individuals trying to “do-it-themselves” by contacting government programs, filling out endless paperwork and making absolutely no progress in the end. Still others have paid unscrupulous mortgage brokers large up-front fees based on false promises and end up losing everything. Because of the recent changes in the economy, self-proclaimed mortgage experts have cropped up on every corner, much to the dismay of many trusting individuals who did not receive the help that they deserved.
Red Flags
When looking for help with mortgage problems, beware of anyone who asks for up-front fees to help you stay in your home. Real help should include a careful assessment of your personal financial situation, discussing the options that are available to you, and efficient, timely representation between you and your lender.
This can only be accomplished by legal professionals who specialize in the mortgage and real estate industry. Be careful of anyone who is new to the industry and is not a legal professional.
What are the Options?
Now that you’ve learned how to spot the scammers, you still need to know if there are actually options that can help you stay in your home. At the present time there are numerous options available to homeowners who are experiencing a financial hardship. The sooner you contact a loan mitigation specialist and discuss your situation, the better off you will be.
Contrary to popular belief, most lenders would rather keep you in your home than go through the additional paperwork, time, and expense of the foreclosure and resale process. That is why acting early is so valuable.
You may qualify for any of the following solutions:
- Reduced or deferred monthly payments
- Debt forgiveness
- An extension on the length of your home loan
- A lower interest rate
- The conversion of an adjustable rate (ARM) loan to a fixed rate
- Or a combination of any of the above modifications
With each of these options, there are pros and cons, paperwork, legalities, and a negotiation process. If you deal directly with your lender yourself, you may not be made aware of all of the options that are available to you. The reason for this is simply because your lender is looking out for their best interests. That is why a representative, who is familiar with all of the modification guidelines and options is such an asset to you.
Don’t wait another day. If you are having trouble making your mortgage payment, a loan modification can be just the answer you were looking for.
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