If you have recently lost your job or have become seriously ill, you may have fallen way behind on your mortgage payments. Because you have been unable to keep up with the payments, you may be facing foreclosure and are at risk of losing your home, leading you to wonder if you have any options available to help you out.
One way that you may be able to forestall foreclosure on your house is to seek out an institution with available programs that work with you to modify the terms of your mortgage. Below are a couple of questions you may have about applying for a loan modification program to help you with your delinquent mortgage payments.
1. How Can a Modification Program Help You With Catching up on Your Mortgage Payments?
One question you may have about applying for a loan modification is how the program can help you with catching up on your mortgage payments. While the terms used to modify the loan may vary depending on the institution as well as your situation, there are generally three ways that these types of programs can help.
The program may work with your bank to reduce the payments you need to make each month to ease some of the burden, and possibly change the monthly due date to one that works with your current financial situation. They may also try to reduce the interest rates from the original mortgage agreement to help reduce the overall amount owed to the bank.
2. What Are the General Qualifications Required for Applying to Modify Your Mortgage?
The next question you may have is about the general qualifications required for applying to modify your mortgage as well as what you need to include with the application. To qualify, you must be in severe financial distress and at risk of losing your house if you miss only a few more payments.
When you apply, you will also need to include proof that you are facing financial hardship. Along with a hardship letter, you should include documents related to the reasons why you are in the situation, such as medical bills showing serious health issues.
If you are behind on your mortgage payments and are in danger of losing your home, a modification program may be able to help you by reducing your monthly payments, adjusting your interest rates, or changing the due dates of your payments. While each program may have different qualifications, they typically require that you include proof of a life-altering event or circumstances that have created financial hardship in your life. For more information about qualifications as well as how they can help, contact a consulting service that offers loan modification programs to speak with a representative.