Timing is Everything with Loan Modifications
Finances are something that shouldn’t be taken lightly at times when the family is in serious trouble with making mortgage payments. Timing is very important and when the payments aren’t made on time or are missed for three months, the foreclosure process is started. This can be ceased through an application for modification but even this takes the right timing as well.
Technically, in many cases, a person can apply for modification before they default but it is more difficult to obtain one. If the modification already hasn’t been applied for, it should be as soon as possible after the notice of default has been received. This being said, it is very important to write the proposal correctly and have all of the required documents to accompany it. Calling the lender to let them know of the intention is the first step. The individual has to talk to the loss mitigation officer about this and there will be an interview to complete. Once the loan modification proposal has been sent in, the bank has three months to respond during which time the foreclosure process is delayed.
The client needs to keep in constant communication with the lender during this time to make sure that the bank has all of the documents and to see if there is anything else needed. It also helps to reduce stress because the borrower will know what is going on each step of the way.
Once the applicant is accepted for the trial period of modification, the payments have to be made on time and at the end of the trial, they must be up to date with their payments or they will not be given the permanent agreement. This is the same for the permanent program – payments must be made on time.
At every step of the way with mortgages and modification, timing is always crucial. For anyone considering this approach to their loan modifications, they are urged to be on time with everything.
