There are many ways we can do to stop foreclosure and save our home. The first thing we need to do is to contact our mortgage company and negotiate for modification of our existing mortgage. The primary reason why people are dealing with foreclosure is that they are no longer make monthly mortgage payments due to various reasons. However, with proper modification and negotiation, they should be able to negotiate with the mortgage company to reduce the overall payment to a level that they consider as acceptable. When applying for modification, homeowners need to provide detailed information about their finances. The mortgage company should also know about the details of their current income. A report should also be given to indicate current assets to know whether they are solvent or not. The financial report should show the amount owed and the current value of the house. Homeowners also need to provide the value of their investment and retirement funds.
The financial report must indicate details of your savings accounts, including the current balance. If we have cars, boats and other vehicles, we should indicate their values. The report must summarize our current liabilities and list of the monthly payments of other debts, such as car loans, credit cards, student debts and others. If we have insurance protection, we should inform their types and how much we pay for them. If we are paying for alimony, maintenance and child support, we should include them too. Next, it is important to summarize how much we spend for utilities, foods and other monthly expenses, such as the Internet and phones. The request for modification must include the “Hardship letter”, which explains why we are unable to pay the mortgage. Other things that must be documented are liabilities, assets and income. The reason we are unable to make our monthly mortgage payments must be clear. There should be clear indications about our current financial challenges.
Although these steps are relatively easy, they can be quite challenging for many people. Many have never created a financial report like this and they could be concerned that they are not able to clearly express themselves. Others could be worried that they say far too much. So, people who are facing foreclosure should know what they need to include in the letter. Everything should be included, such as why they are unable to make monthly payments. As an example, they could have adjustable rate mortgage and this causes their mortgage payments to increases significantly. It is important to clarify if this is caused by external factors that are beyond their control. In this case, the mortgage provider is likely to offer solutions that allow them to pay again each month. If their inability is caused by the loss of job, it is also important to indicate this. It is essential to explain how such a situation is considered unpredictable. Other thing that they need to be aware of is that severe medical conditions that are not covered by current insurance policy could also make things more difficult to handle.