- 1). Contact your lender as soon as possible to talk about the possibility of a loan modification.You do not necessarily have to wait until you are in default to begin the process of loan modification. You could only be 30 days late on your payment or you may even be able to get a modification before you are late. It is better to get the process started early on instead of waiting until the last minute before foreclosure.
- 2). Hire a professional to help you with the loan modification process. If you are financially knowledgeable and experienced in real estate, you could potentially do the job yourself. Otherwise, you may want to hire a real estate attorney for this process. Research anyone you hire for this purpose beforehand. Many companies charge large upfront fees for these services and do not provide any actual assistance.
- 3). Present your information to the lender regarding why you want a loan modification. You will generally need to talk to the loss mitigation department of your lender. The loss mitigation department may ask for documentation that proves that you are in some type of financial hardship. You will also be required to write a hardship letter to your lender explaining the details of your financial situation.
- 4). Get help from government programs to facilitate the process if you are not having any luck on your own. For example, the Making Home Affordable program is a government program that provides financial incentives to lenders to facilitate a loan modification with a home owner. In order to get involved with this program, you have to meet certain eligibility criteria.
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