If you find yourself in a situation where it’s difficult for you to pay the mortgage, then you may want to consider professional help through a company likely the Golden State Financial Group, you can help you achieve a home loan modification. They will help you to negotiate with your lender, achieving more favorable terms that enable you to keep your property. As this is an area of expertise for them, they can often find ways to get your lender to agree to lower interest rates or lower payments, without having to completely refinance your loan.
Golden State Financial Group Explains How Loan Modifications Work
A home loan modification means that you permanently change the existing terms and conditions on your mortgage agreement. You have the right to request a modification and the lender must consider your proposal. That does not mean, however, that they will automatically agree to it. It is for that reason that it is very important that you work together with a company like the Golden State Financial Group, who will do all they can to get the lender to agree to your modification suggestion.
When applying for a home loan, the bank will ask you to send unofficial hardship letter. In this, you can explain why you need a loan modification, while presenting them with a financial plan at the same time. It is important to understand that the lender is not looking for a sob story or how your financial hardship is affecting you emotionally. They want to know why you are finding it hard to pay and what you intend to do about it. Formulate your hardship letter properly, and there is a good chance that the lender will give you a chance. After all, they know that if they decline your request, they are most likely to have to foreclose on your property quite soon thereafter.
You must remember that a bank is a business period all businesses are in it for one thing and one thing only and that is to make money period for closing on a property a good way for a bank to make money. First of all, it is unlikely that they will get as much money for it as what you borrowed on it. Secondly, they will know that you will immediately cease maintaining the property once you know that the bank will foreclose. This means they also have extensive repair costs to pay for. Not just that, the legality surrounding a foreclosure is also very expensive. Last but not least, on paper, a property that has been foreclosed on no longer looks like an asset for the bank, which means they appear less strong. Overall therefore, a home loan modification is as much in the bank’s favour as what it is in yours.
That being said, a bank would much prefer it if you simply make the payments as per your agreed contract. Hence, they will not simply agreed to every home loan modification request that comes their way. You must come up with a strategic plan to repay what you owe that the bank will look favorably upon.