Struggling with a Possible Mortgage Default?
It happens every day across America: people struggling to pay their home mortgage look into a modification loan to reduce their monthly payments.
Ironically, the bank tells the struggling homeowner that they can't be helped unless they fall behind on their mortgage. Once the homeowner falls behind, they often hear that no help will be available until they get back on track and current with their mortgage. What is a person to do?
Dos and Don'ts of Mortgage Modification
At Harold Shepley & Associates, we've developed a 9 point guide to dealing with the subject of a modified mortgage. After you review these "dos and don'ts," it's best to talk with an experienced attorney who works with homeowners just like you, every day. Call us at 877-827-9006, or visit our easy-to-use Contact Us page.
- Never fall behind on your mortgage unless you absolutely cannot keep up with the payments. Many good people have lost their homes because of unscrupulous companies talking them into defaulting on their mortgage in order to help with a mortgage modification.
- If you do fall behind, try to keep up with your mortgage payments as much as possible. As long as your mortgage company is accepting payments, they will not foreclose.
- If you can't make your payment, open up a separate savings account at your local bank and put as much as you can into this account each month. Pretend that this money is already spent. It needs to be off limits to anything other than keeping your home.
- Once you are behind, don't be afraid to call up your lender and ask to do a mortgage modification. Some lenders are easy to work with, others are not.
- Don't forget that while you are "negotiating" with your lender, your lender is also proceeding with a foreclosure against your property. They won't stop foreclosure proceedings until the debt is paid or a new arrangement is completely finalized.
- Ask a professional that can provide actual foreclosure defense to help you. Your lender has attorneys working for them, so you definitely need an attorney working for you.
- Be careful not to get scammed by a "fly by night" out-of state-company that offers you something too good to be true.
- Make copies of all your documents before you send them anywhere. Mortgage companies are notorious for losing documentation and requesting copies again and again.
- Don't agree to something you can't afford. Too often people sign mortgage modifications fully aware they cannot make the payments. This could really hurt them because some lenders have policies in place that require a set amount of time between mortgage modifications. Sometimes they even limit modifications to once or twice for the life of the loan.
Call us today at 877-827-9006, or complete our easy to use contact form. We're ready to help.