Home Loan Modification Hardship Assistance - Early Advice is the Key to Home Loan Modifications

by: Lindsy Emery

Loan modifications are nothing new; they have been available to borrowers for a long time. Recently they have increased in popularity due to the implementation of President Obama's Making Home Affordable Act which outlines the process of streamlining these renegotiations. That is why we hear so much about them these days. If you are interested in investigating a loan modification, read about your options and what can be done to help you.

If you are finding it hard to pay your mortgage bill each month, don't just sit back and wait until you finally default on the loan and foreclosure takes place. Take matters into your own hands and make an appointment with a financial counselor to discuss what you can do about your own unique situation. You can find people who will help you for free and there are some who charge a fee. HUD-approved charity groups offer free counseling. However, given the demand of such services, many loan modification companies have been developed.

However you proceed is your choice, both paid and unpaid advisors have pros and cons. You will also find that some organizations have lawyers with whom they consult and other do not. It is better to pick an organization that has an attorney associated with it so someone is available to work with you to get a loan modification.

When you consult with a for-profit company, be careful. Just like there are many people desperate for financial help these days, there are greedy people willing to use tragic circumstances to line their own pockets. Pick a company with a good reputation, good customer service and good credentials. Check with the Better Business Bureau and only use a company that is in good standing with them.

The first thing you need to do is meet with a counselor. Take with you all necessary financial documents and be ready for a consultation. The counselor will assess your situation and offer you some advice depending on your circumstance.

If the counselor decides that a loan modification is a good option for you, then s/he will help you compose your hardship letter. In this letter you will explain to the lender why a loan modification is needed. Reasons could be layoffs, natural disasters, a death in the family, divorce, or a medical condition. Be concise. Your counselor will assist you in writing this letter and attach the required documentation. It is important that you have an experienced organization working for you and advocating on your behalf since this is a very confusing and detailed process.

If you have lost control of your mortgage, request loan modification hardship assistance. You can get some free advice about selecting and applying for a loan modification company from many sources.