Mortgage Modification – 3 tips to follow and 3 ways to avoid possible scams

Have you fallen back on your monthly mortgage payments and are you suffering from the fear of losing your home to an imminent foreclosure? If answered yes, you need not fret as with the present economic situation, there are many homeowners who are struggling to make the monthly payments on their home mortgage loan.

Have you heard of mortgage modification as a process of saving your home from a foreclosure? Well, basically either a homeowner can go for a refinance or a loan modification in order to avoid losing his homeownership rights. How to initiate the process of mortgage modification? How to make sure whether or not you’re successfully completing the entire process of loan modification without being a victim of the scams? Here are your answers. Read on the concerns of this article to know more on loan modification.

Getting your home loan modified – 3 tips that you may follow

Successfully getting a mortgage modification may seem like a quest that only heroes can achieve. But it is not so. You too can get your home loan modified by following some particular tips from the mortgage experts. Check them out.

1. Complete the entire package: Before you apply for a mortgage modification, you have to show various financial documents like paycheck stubs, mortgage hardship letter, a proposed frugal budget and all other important documents that the mortgage servicer wants. If you miss one single document, your file may be dropped to the bottom of the pile!

2. Ask enough questions: When you contact your mortgage lender, you must be sure about the purpose of modifying your home loan. There are many purposes of modifying your mortgage loan and you must be clear about your particular purpose. Ask questions to the housing counselor or the mortgage lender if you have doubts as it is always better to clear your doubts than take wrong decisions.

3. Stay in touch with your lenders: Once you tell them about your financial hardship and once you write your mortgage hardship letter, you must stay in touch with them at least once a week so that you get to know about the status of your request. Also inform your lender about any changes in your present financial state so that he may remain updated with your finances.

Avoiding the mortgage modification scams – 3 ways to adopt

The homeowners who fear to face foreclosure also worry about one more thing- falling prey to the mortgage modification scams. Homeowners choose to modify their home loans in order to forestall foreclosures but there are some scam artists who may deceive you and push you further towards foreclosure. Have a look at ways in which you can avoid such scams.

1. Be skeptical about the lenders: The scam companies often work hard to represent themselves as authentic companies and therefore you have to make sure that you don’t trust the lenders as they can scam you even before you understand. Check everything about their accreditation, their past records and the consumer feedbacks of that company.

2. Don’t pay for getting help from your lender: The counseling agencies that are approved by the HUD offer free counseling before foreclosure and on the other hand, scammers request fees for providing you with this service. This scam is more prevalent within this industry and therefore you must make sure you avoid all such scams to successfully complete your mortgage modification process.

3. Avoid transferring the property deed: There are some particular scammers who often ask you to transfer the property deal to them. You must make sure that all your property papers are with you and you just ask them to modify the terms and conditions of your loan.
Mortgage modification is the best way to avert the risk of a foreclosure and if you want to keep on staying in your home without falling prey to the scam artists, make sure you go for loan modification and follow the tips mentioned above.