Loan Modification is more widely available now that President Obama has signed a bill for a plan to make things easier on those who are struggling with mortgage.
This plan is called the Making Home Affordable Plan.
Putting off loan modifications when in a financial hardship is a bad idea.
It is best to just step back and get an overview of the options available at the time before there are no options left.
The Housing and Urban Development, better known as HUD, gives people free financial guidance about their mortgage.
There are also other non profit organizations approved by HUD that can help.
Some businesses charge for assisting in obtaining approval, but along with the charging, they may also give access to legal advice and assistance.
One of these businesses may be a good choice because the person may need the legal consulting during the process of modifying a loan.
If the interested party would rather have free-based assistance, they should be cautious and careful when choosing a company.
A thorough investigation may be needed, but the Better Business Bureau is a good place to start.
The first step to getting a loan modification is to meet up with a counselor, making sure to bring the proper paperwork as well.
The paperwork should describe the financial situation at hand.
The counselor will look over it and then discuss what option might be best based on the situation.
If a loan modification is the best option then next will come a hardship letter which the counselor will help with in order to ensure that it is the best possible to present a case.
The case is for the lender to decide whether they approve or deny the application.
The bank will examine why the person got into a default situation with the mortgage to start with.
Financial hardships such as job loss, divorce, or sickness might have changed the situation.
The hardship letter should explain briefly what happened and how payments will be made in the future.