Tag Archive for Stop Foreclosure

Top Ways To Keep Your Home From Being Foreclosed

©fooe2010 - flickr

©fooe2010 – flickr

If you are facing foreclosure or having trouble meeting your monthly mortgage payments, you may be interested in knowing sure ways.  You can save your home from foreclosure, but it means you’re going have to stay on top of things and know what to do.

1) Talk to your lender

The most important thing you can do is stay in touch with your lender.  Don’t keep them in the dark, let them know you are having financial troubles and you are not going to be able to meet your mortgage payments.  Find out what options are available to you and keep updating your lender every month, especially if you are going to be missing a payment.  If you want to find ways to keep your home from being foreclosed on, make sure the lender knows of this intention.   Most lenders would rather help you find away to keep your home and then take it away and put it in foreclosure.  Most lenders loose thousands of dollars when they foreclose on a home.

2) Apologize for the late payments

If you have missed payments on your mortgage, apologize and ask the lender for forgiveness.  You want to keep the lender on your good side, so they will be willing to work with you.  Also if you can start making your monthly payments, the bank may offer you forgiveness on what your previously owed.

3) Come up with some money

If your house is close going to auction, the one sure way to save it is to come up with some money.  The only payment a bank will usually accept is the full amount to bring your account current.  Even if you come up with it at the last minute, the bank will usually accept it, if the auction hasn’t happened.

4) Ask To Refinance The Loan

Depending on your lender and the state you live the bank may allow you to refinance the loan for you home and lower your monthly payments.  The lender may even allow you to take the back pay and put it on the back end of the loan.  This could extend the length of loan period, but at least you would be able to keep your home.

5) Have all your documentation on hand

If you are trying to stop foreclosure, you will have to provide documentation from the bank that proves; you can afford to make the monthly payments on you home.  If the bank is going to help you refinance, they are going to want the proof that you can keep up with the payments.

So these are some of the ways to stop the foreclosure process and keep on track when trying to save you home.  There are many ways to stop foreclosure, but most importantly is to stay on top of the process and keep in touch with your lender.

Is Foreclosure Ever Not Worth Trying To Stop

©Ghaxxx - flickr

©Ghaxxx – flickr

If you are facing foreclosure, you’re probably looking for ways to stop it or avoid it.  This is the natural response, must people want to save their home and not have to pack up and move.  There are many methods for stopping foreclosure out there, but some solutions have drawbacks too.  Believe it or not, there are many situations when it may not be best to try and stay in your home.  This article is going to deal with things you should consider before fighting to keep your home.

First, it’s important to understand that not all solutions to save your home are legitimate. There are many ways to stop foreclosure out there, but you have to be careful, because many are scams.  It is sad but true, that people will try to take advantage of you in your time of need.  When some homeowners are trying to save their homes, they wait till the last minute to do anything.  This leaves them with very few options to stop foreclosure.  Because most homeowners procrastinate and wait till the last minute, they will grasp at any chance of help.  This is a bad situation to be in and the time that most scammers will try and take advantage of homeowners.  They know with such urgency and a short time limit, you will say yes to anything. By waiting for the last minute, you’ll become more desperate and it’s a good way to get taken advantage of.

Many people facing foreclosure decide to walk away from their home, because it is too much strain and stress on them.  Sometimes finding a solution to work, might be too stressful, especially when you keep getting turned down for options you thought might work. This can be frustrating and discouraging, but it’s important to understand that walking away without doing anything is just about the worse thing you can do in foreclosure. At the very least, you should speak to your lender and try to arrange a deed in lieu of foreclosure. This will help your credit and you’ll recover from foreclosure much more quickly.

Many people do get qualified for a loan modification, but then they can’t keep up with the payments, so they find themselves right back in the stresses of foreclosure.  If you know that you’re not going be able to keep up with the loan modification payment, then it might be better to let the home go, by selling it or using a deed in lieu to give back the home.

Keep in mind even if you do get approved for a loan modification it may not be the best option financially.  You have to look at your overall future and finances to decide if it might be right for you.  A loan modification wont help your situation if cant afford the new payments. On the other hand, if your financial hardship is only temporary and there is a chance that you’ll be able to comfortably make the payments in the future, then it may worth the risk to accept a slightly unaffordable modification payment.

Avoiding the problems and stresses of foreclosure may seem like the easiest route now, but if you plan on getting your life back on track, you need to deal with your problems as soon as possible. Don’t use the excuse of too much stress or or not enough time. Stopping foreclosure, even if you don’t end up keeping your home, should be your number one priority.

Foreclosure Scam Warning Signs-What To Watch Out For

©masstroopers - flickr

©masstroopers – flickr

With the increasing number of foreclosures in the US housing market, comes a rise in foreclosure rescue scams.  It is hard to believe that people still take advantage of others in their time of need, just to make money.  These people are truly scumbags and need to be stopped.  If you are facing foreclosure, you may want to read on to learn about the sign of a possible scam and what to watch out for when trying to stop foreclosure.

Below are the warning signs of a Foreclosure Rescue Scam, if you are working with a person or company that exhibits any of the following, you may want to think twice and look for someone else to work with.

-The person asks you to pay their company your mortgage payment and then they will forward that to you lender on your behalf.  (This makes no sense, cut out the middleman and send the mortgage payment to the lender yourself.)

-The “rescue” company asks that you give them your deed, or transfer the title to them and they will help get you out of foreclosure.

-You receive a door-to-door solicitation or some piece of marketing service that will buy your home and that mentions foreclosure.  Some of these people are legit, but most of them are not, it usually is wasting precious time to work with one of these companies. When there are more legit companies out there that can help you.

-The company request you give them a fee to provide you will services, especially if they ask for a fee up front.  It is okay to pay a company after the do the services that they promise to provide to you.

-If you are offered a contract to sign with a foreclosure rescue company, take it to an attorney and get it reviewed.  Don’t sign any paper work, with out another expert not affiliated with the company you are working with, takes a look at it.

-If you do sign a form of sales contract make sure that it releases you from any liability of the mortgage that you have on the property.  Which means to make sure that your mortgage is paid off and that you no longer owe money on your mortgage.

-Never sign any blank pages, you never know what the foreclosure rescue company could add to the page at a later date and make sure you get copies of everything you sign.

-If you do not speak English have a translator help you and that you can trust.

Below are common promises some companies will make to you and you should take a step back and see if they can really fulfill these promises or if they are just trying to scam you out of money.

1.    We’ll cover you first couple of rent payments on your apartment.
2.    We will make sure you get money back at settlement that you can use any way you want.
3.    We will buy you home “as is.”
4.    A guarantee to find a buyer for you home 10-14 days.
5.    We will save your credit or help you reestablish your credit.
6.    We will help you find new financing with lower payments and interest rates.

Not everyone you meet is trying to scam you and sometimes they will fulfill the promises above, but keep in mind if you are getting an offer that sounds to good to be true, it probably is.  Also always stay in contact with you lender and possibly a foreclosure attorney.  This way you can run things buy them and see if they sound legit.  Also if you working with a company do some online research and see what other people have to say about them.

Fighting foreclosure and Avoiding Scams

©jscreationzs - freedigitalphotos

©jscreationzs – freedigitalphotos

Millions of U.S. homeowners are having a tough time making ends meet and paying their mortgages on time.  Sometimes it is due to a sudden illness or unexpected job layoff, whatever the reason may be more and more people are facing foreclosure.

Reasons Why Homeowners Are in Foreclosure
More and more homeowners are barely able to cover their mortgage payments each month.  Most people are in an adjustable rate mortgage, which was a possible good deal at the time, due to the affordability, now these rates are changing and on the rise.  Fixed rate periods have come to an end and most likely their interests are going up and therefore increasing the monthly payment amount due for the homeowner.

Another reason a homeowner may be facing a mortgage default is that even though they have kept up with their payments in hopes of refinancing into a more favorable and stable loan program, they cannot because their home value has dropped below their mortgage balance, thus leaving them with no options.

What Can Be Done about Foreclosure
-Discuss your problems with your lender; see what solutions they might have for you.

-Talk to all your credit providers; see if they can lower some of your interest rates on credit cards to help you save money.

-Get free assistance by talking with housing counselors supported by HUD who provides the services to help homeowners avoid foreclosures.

-Consider selling house, paying off the mortgage and moving into a more affordable place to live.

-See you are eligible for a FHA (Federal Housing Authority) loan.  FHA approved lenders follow strict guidelines, which are designed to prevent foreclosure and assist homeowners in getting them into the right loans and through tough times so they do not lose their homes.  The FHA can help homeowners to refinance from an ARM increasing payment they can’t afford.  This program is known as the FHA Secure Loan Program.

-Consider bankruptcy as final choices, talk to a knowledgeable bankruptcy lawyer and see what options they have for you and how it can help avoid foreclosure or slow the process.

Watch Out For Scam Artists
Homeowners who are looking for ways to avoid foreclosure need to be aware of scam artists trying to take advantage of them.  People that charge your exorbitant fees and make promises to get you out of foreclosure by handling the paper work or making the phone calls, that likely the homeowner can do themselves.  Just be aware that there are people out there that will try and take advantage of people in their time of need, don’t sign over any checks or deeds to your house, do research on any company you work with and make sure they are legit.

In the end explore your options, try to work with knowledgeable people and you will get through the process.  It is not the end of the world if you are in foreclosure; there are solutions and options available.  Talk to friends and neighbors who may have faced foreclosure and see what advice they have to give.

Alternatives To Foreclosure

 

©Vichaya Kiatying-Angsulee - freedigitalphotos

©Vichaya Kiatying-Angsulee – freedigitalphotos

Facing foreclosure is a stressful time in a homeowner’s life; the thought of losing a home is an unsettling one.  You took time finding the right place for you and your family.  You put the effort in getting it set up and furnished for your needs.   You probably looked at several other homes until you found your special one.  With these thoughts in mind, you may come to the conclusion that you don’t want to lose your home and you would like to fight foreclosure.  Read on to find out alternatives to foreclosure.

Negotiate, Negotiate, Negotiate
In almost all foreclosure cases, the first step is do go and negotiate with your mortgage lender.  The sooner you talk to your lender, the more likely it is that they can come up with a solid solution for you to avoid foreclosure.  Tell them about your situation and prove to them that you only fell temporally behind and you can stay on top of your payments if they can help you out.  The lender may be able to lower the interest rate on the mortgage for you or even extend the length of the mortgage term in order to lower the monthly payments.  This is the first step to finding an alternative to foreclosure.

Refinance
Depending on your financial situation and how long your money flow problems are going to last, you may want to consider refinancing your home.  If you still have good credit the interest rate on a new loan might be lower than your original mortgage rate.  Also if you have enough equity built up in your house you might be able to borrow money from that, in order to pay past due mortgage amounts.

Government Assistance
The federal or state government might be able to provide you will assistance if you want to stay in your home.  You do have to qualify for a lot of their programs, but it is worth looking into.  For instance, if you have an FHA insured loan, your lender may be able to get a one time payment from the FHA insurance fund that will bring your mortgage payments up to date.  Also you will want to look into your personal state laws and assistance programs, some can provide help to homeowners who want to avoid foreclosure.

Transfer ownership
If you have exhausted all options for staying in your home and avoiding foreclosure, you may want to consider giving up your home to stop the foreclosure.  Sometimes, to avoid a foreclosure, it means selling your home to pay off you debt.  This is way to get out of your mortgage payments and to keep a foreclosure off your credit rating.

Facing and fighting foreclosure can be an emotional and financial roller coaster.  Even if you feel like you have exhausted all your options for saving your home, make sure you talk to all knowledgeable people in the field of foreclosure, before giving up.  Sometimes people forget to talk to neighbors, who may have gone through similar situations and may have found a way to save their home that you did not think about.

Tips On Getting Your Lender To Stop Foreclosure

©imagerymajestic - freedigitalphotos

©imagerymajestic – freedigitalphotos

When most homeowners are facing foreclosure, the first thing they do is hold a grudge against their mortgage lender.  Thinking the lender is out to get you, is the wrong way to go about stopping your foreclosure.  Remember the lender is not trying to hurt you personally; they don’t take pleasure from sending you a foreclosure notice.  So maybe it is time to drop any underlying grudges, you have to communicate with your lender and try to turn them into one of you allies.  Mortgage lenders are actually one of the first people you should turn to when facing foreclosure.

Your first step, to working with your mortgage lender is to contact them; most likely you won’t receive a call from them if you’re in trouble, but they will be willing to talk, if you call them.  If you are financially hurting and facing foreclosure, call them as soon as possible and see what options they have for you.  Instead of going over all your problems on the phone, schedule an appointment to come in and speak with them directly, this will show them that you are seriously looking for help. Obviously, don’t attempt this if your lender is in another state, but if it’s not to inconvenient, meeting with them in person could make a big difference.

Before you go in to meet them, go over your finances and what you owe.  Ask them for any paperwork you may need beforehand. They should have a standard packet that will ask all the questions they need to know. You are going in to try and sell your mortgage lender on a plan to stop your foreclosure.  In order to do this, you need to come up with a “plan” on how you are going be able to pay them.  The more organized and controlled you are the better chances of receiving foreclosure help.   Know what you’re going to say and how your going say it, practice it a few times before going in.

For your “plan” of action, show them proof that you are just temporarily hurting for money.  Show them you have been job searching, even bring in your resume.  Tell them about upcoming interviews you may have.  Lenders are not going help someone who looks to be a risky investment, with no future plan.  Show that you care about your home and you are going to save it.

If you are out of work due to an injury, show them a note from your doctor telling them when they expect you to be able to work again.  This will prove that you do intend to make your mortgage payments, as soon as you can get back on the job.  Remember always bring the proof with you don’t just tell them about it, this shows you are very serious.

Attitude and appearance are very important things to consider as well.  But this doesn’t mean you have to go out and buy a new suit.  Just make sure the clothes you are wearing are nice, clean and ironed, shine your shoes up, take pride in how you look.  Walk into the bank with you head held high, have a strong handshake and look people directly in the eye.  As for your attitude, leave it at home; don’t go in with a chip on your shoulder.  Make the mortgage lender like you, they will be more willing to help you, if they don’t end up feeling threatened.

In the end the mortgage lender should have some options for you, just make sure that you can meet the requirements of any offerings they have for you.  If they lower your mortgage payments for a certain amount of time, you’ll want to make sure you will be ready to pay full price again at the set date they give you.  Otherwise you will just find yourself in the foreclosure process all over again.  When the lender comes up with solutions, take them home and think about them for the night and give them a decision first thing in the morning.

Not all lenders will be cooperative, so you may need to speak with a professional, who has more experience that you do at this sort of thing, but ultimately, if you want to save your home, there should be a resonable solution!

Foreclosure Fiction and Fact

©ddpavumba - freedigitalphotos

©ddpavumba – freedigitalphotos

With all the information swarming around on the Internet about foreclosure, it is hard to figure out what is accurate and what is just made up.  Listening to the wrong information or following bad advice can make you lose your house faster than you can say foreclosure.  Below I’m going take some of the top inaccurate information I see floating around the Internet and try to clear up the mixed messages.

•    The banks don’t care if you’re in foreclosure and won’t do anything to help you out.

This is defiantly inaccurate information; the banks do not want to see you in foreclosure.  This may seem hard to believe, since they are the ones serving you the foreclosure notice, but it actually really hurts a bank financially every time they foreclose on a home.  The banks will be closer to going bankrupt themselves, if they keep having to foreclose on people.  Usually if you speak to your bank before pre foreclosure stages, they will do anything possible to help you.

•    Getting a foreclosure notice means you have to move out immediately.

Depending on what state you live in you may have a very long time before the foreclosure is finalized.  This can give you several months or more to find an affordable housing situation.  Talk to a local foreclosure lawyer and see what laws pertain to your state.  Keep focused though, if you are not able to improve your situation, you will eventually have to move, so get out there and start seeing what options are available to you.

•    Banks won’t refinance your mortgage to help you avoid foreclosure.

This is not necessarily true; it all depends on the amount of equity you have built into the home.  The longer you have lived there; the better chances that the banks can help you with a home equity loan or refinance.  With a second mortgage, if it’s affordable, you can pay off your mortgage arrears and get out of foreclosure.

•    Filing bankruptcy will save you from foreclosure.

Filing bankruptcy is not a simple process it can take months for a discharge and with the new laws it’s not quite so easy.  A chapter 7 bankruptcy can temporarily help you avoid foreclosure, but it is not a long term solution. A chapter 13 will help you keep your home and structure a legal repayment plan, but it may not be affordable. You will want to get an opinion from a bankruptcy attorney to make sure you know all your options.

•    You can’t afford the mortgage; you have been foreclosed on, now it is the banks problem.

If there is a deficiency you may still owe the difference plus any interest even though you no longer own the home. Just because you are in foreclosure, it doesn’t mean you can just walk away. You need to do whatever is possible to prevent foreclosure, even if it doesn’t mean keeping your home.

•    You came up with all the money you needed to pay the bank back and save your home, but the foreclosure is in place, so it is too late.

This isn’t so in most states, if you can pay back all your past due amount and bring the mortgage current, you can stop the foreclosure.  Remember the banks do not want to foreclose on you, if you have the money to pay them, tell them immediately. In most cases, if you can afford the payment now and you can show some sort of down payment, they will help you reinstate your loan.

•    Once your house has been foreclosed on, the bank has the right to keep all your stuff inside.

The rule of thumb is, if you can carry it away it is all yours.  Personal property belongs to you, if it is attached to house, it should stay behind.

•    There is nobody that will actually help you stop the foreclosure.

There are plenty of good companies out there that can help you stop the foreclosure and save your home. Our site provides tons of information and advice and we don’t charge anything, so if you think you can’t find help, it’s because you’re not looking in the right places.

Hopefully some questions got answered out there and some of the foreclosure rumors floating around got cleared up.  If you’re facing foreclosure, the best thing you can do is seek professional help immediately and explore your options, don’t wait for the last minute, it will be too late.

People You Can Depend On When Facing Foreclosure

©David Castillo Dominici - freedigitalphotos

©David Castillo Dominici – freedigitalphotos

If you have received an intent to foreclose notice from your bank, knowing what immediate action to take can make all the difference.  I’m sure you are facing a lot of fears and anxiety, but taking initiative to doing something about the foreclosure will make you feel more empowered.  The sooner your act, the better your chances are for positive results.

When facing foreclosure the very first place you can turn to is the United State Department of Housing and Urban Development or HUD.  HUD is a group of expert housing counselors, who can give you immediate advice on what to do when facing foreclosure.  If they absolutely have no options to help stop the foreclosure, they will give you assistance on finding a new more affordable home.

Your second option is to find a local foreclosure attorney, or a company that uses attorneys to communicate with the lenders. With the right lawyer and situation you may be able to put a hold on the foreclosure process.  When locating a lawyer look for one who is very knowledgeable in foreclosures, your state laws and real estate.  If you find yourself in a foreclosure scam or being discriminated against by your mortgage lender, make finding an attorney your first step.

Your first steps should always be to seek out professional assistance such as HUD or a lawyer, but don’t forget to look to those around you.  With so many Americans facing foreclosure, it is no longer an embarrassing subject to speak about.  Other peers and family members may be able to give you guidance or introduce you to someone that can help.  They may be in, or know someone in the same situation and can give you input on what needs to be done.

Another option that some people don’t think of is to talk to a real estate agent.  A good Realtor, who has been in the business for a while, will have seen a lot of different cases.  They may have advice for you on how to slow the foreclosure process.  Also if you are still in the pre-foreclosure state, where you haven’t been officially foreclosed on, the agent may be able to help sell your home.  Sometimes a real estate agent can sell a home much quicker than, a “home for sale by owner” sign can.

One of the most obvious steps, but one that people lack to do is to talk to your financial lender.  Contrary to popular belief banks, do not like to foreclose on people.  The more foreclosures that are written up in the banks books, the less money they make and the more likely they will go bankrupt.  If you talk to your lender soon enough and have always been in good financial standing with them, they will have options to help you.  Do not avoid this step, it is one of the most crucial and remember the earlier in the process the better chance of avoiding foreclosure.

Finally use the Internet for what is was originally intended for, a resource tool.  Do some research read articles about foreclosure and see what tips are out there and how people received help.  Be careful about a lot of online scams and remember people like to take advantage of others when they are in a desperate state.  So use the Internet as a tool, but with caution.  If something sounds iffy give it a second thought.   The foreclosure advice should all be free online and you will find useful information on how to stop foreclosure

How To Spot An Investment Scam

©Stuart Miles - freedigitalphotos

©Stuart Miles – freedigitalphotos

With the rise in home foreclosure and millions of Americans needing help, you will find a rise in real estate investors.  There are plenty of honest investors who can help you locate great deals on properties or teach you to become a successful investor.  You will even find people who specialize in purchasing homes to help individuals stop foreclosure.

There are also plenty of investors who will take advantage of people in need, using them and trying to turn a quick buck.  When you find yourself close to foreclosure and don’t know what to do, it is an easy time to be convinced by some con investors that they know how to help you.  They can talk you into selling your property for pennies on the dollar, or even to invest in their latest real estate course, promising you millions.

Some of the shadier real estate investors will harasses you will emails, making all kinds of promises.  Remember if you get an email that promises to teach you how to be a millionaire, it is likely a scam.   When you hear all kinds of promises of unlimited wealth on late-night infomercials, those are the con artists.

One of the most common real estate scams comes from investors who offer to purchase your home and help you stop foreclosure.  They talk to distraught homeowners and promise to solve all their financial problems.  If you are facing foreclosure and someone promises you a solution that sounds to good to be true, it probably is.  There are plenty of legitimate investors that can help you though.

So how can you tell the difference between an honest investor and scam artist?  Well, see how they approach you;  Honest investors usually don’t contact you, they wait for you to contact them. It’s up to you to seek out an investor, or find a reputable company who can find one for you; usually a Realtor or investment firm.  If you’re in foreclosure and you need an investor to purchase your home through a short sale, try asking friends and family if they know anyone.  Getting a referral from someone your trust is the best way to be sure that your getting honest help.  At the very least, do some research on the Internet, look for reputable private real estate investors or investment companies.  Google the companies you’re thinking of working with; see if there are any reviews on the company and what people say.

Another real estate scam that people seem to fall for is the sale of expensive investment courses.  These are the courses that promise to teach you insider secrets and show you how to purchase a home with no-money down.  When you hear people say they can teach you to purchase a home with no money down, that should tip you off right away that it is a scam.  Purchasing these out of date real estate courses will sink you further into debt.

If you look around online you can find many real estate investing courses for free or possible a small fee.  Look at reputable Realtors or private investor websites, for these classes.  Or try watching some free online real estate investment movies, you might find all the tips your looking for there. But stay away from “free seminars”, unless they are sponsored by a charity or a program that has nothing to sell. Most “free seminars” are a scam to get you locked in a room so they can use high pressure sales tactics to sell you on their product!

Be aware of the biggest real estate scam of all time, which is the promise of great wealth by investing in foreclosure homes.  These con artists claim they can teach where and how to buy distressed properties, for half their market value.  All you have to do is give them several hundred dollars and they will teach you their ways.  This is a complete scam and they are just trying to get money from.  You can locate these properties for free by making a trip to your local county Recorder’s office.

Overall, try to keep your sensors on and be aware that there are plenty of people who would love to take advantage of you.  Don’t just say yes, with out doing the proper research.  If people are offering to teach how to become a successful investor, or offer to help you save your home from foreclosure, think twice about doing business with them.  Take the time to ensure the person you are working with has the proper credentials and solid track record.

How Loan Modification Can Stop Foreclosure

©nokhoog_buchachon - freedigitalphotos

©nokhoog_buchachon – freedigitalphotos

This year hundreds of thousands of American are being foreclosed on.  Not only do the homeowners want to avoid foreclosure, but so do the banks.  Banks do not want it to happen because they are forced to document every foreclosure and they generally take a loss on each one. It’s estimated that the average loss for a bank is over 40%!  The more foreclosures in the banks books, they more likely they will fail and go out of business.

The main cause of many of today’s foreclosure problems, is bad lending practice.  It used to be that buyers had to show 30% of the list value of the home as the down payment.  They would also have to show a year’s worth of pay stubs to get a mortgage.  Equal opportunity in lending laws meant that this was deemed discriminatory.  When this was combined with an incentive structure that paid huge commissions for loan origination, loans began to be referred to as “liar loans” and the end consequences are what you see today.

Millions of new homeowners getting these “liar loans” are ill educated on what they are agreeing to by signing the mortgage papers.  Adjustable Rate Mortgages, often what you hear about when applying for a loan, usually gives you a good deal in the introductory period, but when that ends, home owners are suddenly faced with double or triple monthly housing bills. All these failed mortgages and increasing interest rates have left the real estate market in shambles and it’s stuck homeowners with a mortgage that’s worth more than the probable resale value of the house.

This is where loan modification comes in.  Loan modification is a negotiation technique and it can get various terms of your loan modified, like a refinance option.  Keep in mind that mortgage loans are built around two terms:
1.    The interest rate of the loan
2.    The time period over which the loan has to be paid off
The interest or compound interest rate is the percentage of the remaining balance that the bank takes as a profit from each payment you make.  Compound interest, over the lifetime of a typical mortgage, adds up to a large amount of money.

Loan modifications are either a reduction of those interest rates or an extension of the term of your loan.  To get a loan modification you have to show a financial hardship that has reduced your income significantly enough to keep you from making your regular payments.  You also must show that you still receive some sort of regular steady income.  After you have proof of these two things, go talk to your lender’s loss mitigation department.

When applying for a loan modification, banks should be cooperative, once you start talking to the right person.  Remember they don’t want a foreclosure on there books.  Keep in mind though that the process can take at least 6 months to a year before happening, so plan early.  Having a loan modification specialist in your corner can help you out.  Much of the time spent getting the loan modification, is done trying to talk to the right people; a specialist can help you cut through all of this and save time. What may take you 6 months to a year, may take a specialist less than a month. In same cases, they may even have pre approved programs that the lender has already agreed to.

After you receive your modification and have lower payments, make sure you can realistically pay them.  Cut back on other expenses, like entertainment and cell phone bills.  Even then, be realistic and if you can’t actually afford the new payments start thinking about selling your home.

Many people think that keeping their home is the only thing that matters in life, but in reality, your family is all that matters and finding a new and better home is always possible. Don’t get so attached to your home that you tear your family apart trying to keep it.