Mortgage Payments During the Loan Modification Process

If you are unable to make your mortgage payments, you might consider looking for a loan modification. This guide will answer your questions regarding the loan modification process.

1. First,

   As a result of the slow economy, many homeowners are unable to make their house payments. If
   you are looking for a loan modification, it may take months to process. What you do while
   you’re waiting for the loan modification can make a big difference in your approval.
   
   First, locate information about loan modifications on your bank’s website. Gather all of your
   financial records, including all pay stubs, bank statements, and expenses for the past six months.
   Work with your bank to complete paperwork and keep all records of communication with the
   lender. Make sure you ask lots of questions so you know how the lender will restructure the loan.

2. Second,

   Make on-time loan payments in full while you’re waiting for approval. Ask your bank
   representative how much to pay and when.

3. Lastly,

   You may discover that your loan modification has dramatically changed your loan. Banks
   either create loans with lower interest rates that increase over time, while others will reduce your
   principal balance. Look at the fine print to understand when payment is due. Understanding your
   obligations will ensure that you avoid costly fees and possible default on your newly modified
   loan.