The Golden State Financial Group is a financial organization that has helped thousands of people retain their homes. One of the ways in which they achieve this is by negotiating home loan modifications with various lenders. A Home loan modification is essentially a new contract between a borrower and a lender, in which specific terms and conditions have been changed. For instance, there maybe changes to the interest rate, the repayment schedule, the term of the loan itself, and so on. On paper, a home loan notification sounds almost too good to be true. Some feel that whenever they get into some sort of financial difficulty, they can simply ask their bank to take it easy, and the bank will agree. It should come as no surprise that this is not how financial institutions operate.
Golden State Financial Group Explains the Home Loan Modification Process
A bank is a business and all businesses want one thing and one thing only and that is to make a profit. Taking a property away from someone who doesn’t pay is expensive. This is why, in certain situations at least, banks will be willing to listen to a loan modification proposal. However, the reasons behind the inability to pay have to be sound and honest, and the proposed plan to still repay the overall money owed has to be achievable as well. So how do you achieve this?
First of all, you have to understand that a home loan modification will not be offered to just everybody. Instead, you must be in true financial hardship period this generally means meeting a number of in through financial hardship. This generally means meeting a number of requirements, including:
That you have fallen behind on your mortgage payments.
That you have an ARM loan that will soon be or has recently been adjusted.
That you have an upside down loan.
That you have a negative amortization loan.
You must also have a genuine reason for hardship. Commonly accepted reasons include loss of employment, death in the family, divorce, unexpected medical bills, or being forced to take on less hours at work.
The first thing you will have to do is formulate a hardship letter in which you highlights a number of key issues in a very short and to the point manner period it should start with you saying that you have fallen behind on your mortgage payments, including amounts and dates. You then provide the exact reason why this has happened. Keep this short. If you have lost your job for instance, don’t explain all the reasons behind that, but just simply state that you have lost your job. Then, make a short and to the point suggestion of how you intend to repay what you owe. Be realistic about this. If you still owe $100,000 on your mortgage, your lender is unlikely to agree to simply forgive that bit. If, on the other hand, you only owe $1,000 on your mortgage, then this may be something that they would consider.