According to the RealtyTrac which is the source of information of foreclosure, in 2009, property owners accepted foreclosure filings until 2.8 million in the u.s, and it has become a record. You can avoid foreclosure and save your house if you’re falling behind the payments of your mortgage. You have to be able to provide an evidence showing your difficulties in finance to your bank or mortgage lender that you no longer have the ability to attain your mortgage payment. Soon you will have to ask for a modification of mortgage loan that can restructure or cancels your current loan.
1. If you feel that paying the bills of your current mortgages is impossible, then make some copies of the documents that will be needed by your lender to make certain of your financial hardships. In order to prove your gross income in each month, copy your latest W-2 forms or income tax returns from the federal and the recent paychecks. Make copies of your car statements, as well other loan such as personal or student loan, also your credit card statements, to verify your obligations in paying your debt each month.
2. Call your lender and tell him that recently you have lost your job, and that you were forced to pay a very expensive medical bills, or that your annual income has decreased so that you can’t pay your mortgage bills for more. Modify your current loan to make it more affordable or lower your monthly payment by creating a new loan, or ask your lender to cancel your mortgage. Ask your lender in case he is working with some government programs made to assist struggling house owners in retaining their residences.
3. Make a letter stating your financial hardship. This letter should explain the reasons that makes you run into financial difficulties and other reasons that make you unable to pay the mortgage each month. Do not convoluted, just go to the heart of the matter, and as clear as possible.
4. Send the letter of your financial hardship to your lender as well the copies you have made in step 1 either by e-mail, regular mail, or fax, depending on the preferences of your lender. To make sure that your financial hardship has caused you to go default on your mortgage loan, now your lender will analyze your case.
5. If your bank or your lender says that your financial difficulties warrants a move of that kind, then you must agree to a modification or mortgage cancellation. You will directed to one of a few options : in the worst case, your current mortgage will be cancelled by your lender and that the new one will be provided to you, as a result, your loan will be more affordable. In many instances, the interest rate of your mortgage will be lowered by your lender, forgive a portion of the principal balance, or restructure the terms of your loan.
