Issue – 27 | July 2013 | "Debt, Mortgage, Bankruptcy, Foreclosure News" by Suburban Legal Group PC
As defined by the U.S. Department of Housing and Urban Development a loan modification is: "A Loan Modification is a permanent change in one or more of the terms of a Borrower's loan, allows the loan to be reinstated, and results in a payment the Borrower can afford."
If you have a Chicago home loan that has become a hardship and you are at risk of losing your home, a loan modification may be your best solution to stop foreclosure and keep your home. A lot of people have heard of loan modification but they do not understand the process involved.
It wasn't long ago that you could not apply for loan modification until you had defaulted on your Chicago home loan. This is no longer true and you should follow these steps toward loan modification as soon as you are in need:
Step 1: Alert your lender that you wish to apply for a loan modification.
Step 2: Collect the necessary documentation required by the lender. This may include pay stubs, bank statements, other debts, and any other pertinent information. If your package is incomplete your file will not be reviewed by your lender.
Step 3: Write a letter of hardship. This letter explains why you are no longer capable of paying your current home loan as it exists.
Step 4: Hire professional help. Before you submit your documentation and letter of hardship to your lender you will want to discuss your situation with a qualified foreclosure attorney in Chicago. They can help you navigate the loan modification process and ensure the paperwork is done correctly.
A foreclosure attorney can also review your Chicago home loan and tell you their opinion on the best option to help you save your home from foreclosure.
Step 5: Follow up frequently. If you opt to go forward with loan modification on your own you are going to need to keep in touch with your lender regularly to find out the status of your modification. Make sure you speak to someone in "loss mitigation" and get updates on your situation.
Loan modification offers hope for people with a Chicago home loan, who are struggling to make payments. Schedule a FREE Legal Evaluation today to talk to a qualified attorney about your personal situation.
The article above appeared in the Suburban Legal Group "Debt, Mortgage, Bankruptcy, Foreclosure Newsletter". Issue – 27 | July 2013