Mortgage Modification Solution | Mortgage Modifications, Why So Many Of Them Are Not Working
November 14, 2010 – 1:53 am
There are predictions that there will be over 8 million home foreclosures over the next few years and yet nothing seems to be helping. Statistics recently showed that over 50% of modified mortgages failed anyway. If we are in such a state of emergency in regards to closures why are so many modifications failing?
One would think that the banks would stand to lose considerably in a foreclosure, so why does it seem they are not willing to be more helpful in assuring a homeowner does not lose their home? Why aren’t banks more eager to negotiate terms that the homeowner can afford?
The truth is banks are not convinced that modifications work, they claim that a modification is only a temporary solution and that they only postpone the inevitable. They feel that rather than negotiate with the homeowner that it is best for them to quickly proceed with the foreclosure. They claim that this will minimize losses, when indeed it appears that a workable modification, one the home owner can afford would do just the opposite.
So how does a distressed homeowner remedy their situation? How do you convince the bank to do something they are not anxious to do?
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The answer to this question comes down to the home owner’s letter of hardship and their ability to negotiate. Naturally the homeowner is the underdog in this common scenario, but they do not have to give up hope, there are ways to convince the bank to work with you.
As just mentioned the most vital part of a mortgage negotiation is the letter of hardship. It is this device that serves as the catalyst for negotiations. There are important steps to properly compiling a letter of hardship that will bring the bank to work with you.
A major objective of your hardship letter will be to express clearly why you have reached default.
There are a number of hardships that banks consider when trying to work out a defaulted loan.
Once you understand what the banks are looking for you need to compile your letter. It is vital that you express an ability to pay future arrangements, because the bank will be likely to take the attitude that we discussed above. You will want to counter your argument for not being able to pay with an argument of why you can afford the adjustments. In order to support this claim you will want to compile a documented list of your household total income.
While these documents will open the negotiation process it will be to your benefit to hire a negotiation expert to represent you. When hiring an agency you should consider the following:
When hiring an agency play close attention to considerations number 3 and 4. It is these two conditions that may mean the difference between you’re meeting the obligations of the mortgage modification and facing foreclosure. Despite the attitude of the banks, mortgage modifications can and will work if you come to an agreement that is tailored to your needs and not the desires of the bank.
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Tags: Home refinance, Realestate Mortgage modifications, US Bank Mortgage modifications
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