Begin It

Loan modifications are becoming more and more commonplace in today’s market. This is due to several factors; the down economy, the prevalence of Adjustable Rate Mortgages, layoffs nationwide, etc. Even as widespread as the phenomenon is, people still find it daunting to begin the process of trying to get their loan modified. The fact is, it’s not that difficult, but it requires time and preparation.
If you are currently behind, or fear you soon will be, you need to act. Don’t wait for the lender to start harassing you about your debt, be pro-active. Sit down and figure out your finances. Is there a way to increase your income? Can you live without some luxuries? Can some of your expenses like credit cards be negotiated down? Once you have a clear picture of where you are and what you can do, then you need to tell your story.
If you are going to be considered for a modification, the lender will want to know why. You will have to compose a letter explaining in detail what lead to your current situation. Pride will have to take a back seat on this one, because the Hardship Letter is very important, and must tell the whole story. The lender wants to help. But they need a good reason, so make sure you spend quite a bit of time on this aspect.
The next phase is to contact the lender. Now this is a very long, tiresome, and frustrating task to say the least. A good portion of folks out there choose to hire an independent 3rd party to log the hours on the phone, send the faxes, write the emails, etc. just because it takes too much time to be able to do it themselves. Others choose to go it alone. Either way, a modification is possible, but you must begin it before you can end it.