Free Loan Modification

Are you looking into Free Loan Modification options? Well, you will find plenty of websites that portrait this as an easy option. You will come across terms like "Do your own loan modification without paying a high fee to outside companies and lawyers." If you are having trouble paying your mortgage, have an adjustable rate or your value is upside down, it is possible to renegotiate your loan terms. And by following the steps outlined below, and after reading more on the pages listed on our navigation bar to the left, you will have enough information to get started. A great source is our page about Do-it-yourself loan modification.

However, if you think this is getting too complicated, we always advice to seek legal counsel.

Here are some helpful steps:

Step 1:
Do your own free loan modification without paying a high fee to outside companies or a loan modification attorney. If you are having trouble paying your mortgage, have an adjustable rate or your value is upside down, it is possible to renegotiate your loan terms.

Step 2:
One thing that is for certain, you NEED to have a hardship. Hardships can be: Illness, job loss, payment has adjusted and you can no longer afford it, etc. Write this down in a tear jerking hardship letter. Include exact lay off dates (if laid off) or change of job or reduced hours, depending on your situation. Illness can include yours or a family member that you have to take care of. Also death in the family can be a hardship, especially when related to the borrower.

Step 3:
Contact your mortgage company. If you have mortgages from two companies, you will need to contact both. Ask for the loan workout department. They may have their own forms or they will advise you exactly what kind of documentation they need. Let them know about your dilemma/hardship. They may just walk you through the steps themselves. It may be easier than you thought. But: All mortgage companies are different! In the navigation bar to your left we have the most common banks/mortgage companies listed at your disposal.

Step 4:
Depending on your personal situation, you will either be requesting:
A) A payment deferment.
B) A modification of your interest rate.
C) The principal balance to be lowered to the present market value.
D) Possibly combining your first and second home loan (This may be possible if you have the first and second mortgage with the same company).

Step 5:
Very important: Follow up constantly and consistently! The mortgage company (or bank) should assign you a 'case worker'. If they tell you it takes 3 weeks for an answer, call back in two! Especially if you are in a possible foreclosure situation.

Step 6:
If you do NOT have an income due to lay off, illness or other hardships, you may not qualify. However, contact your mortgage company anyways and give them a proposal as to how you plan on getting back onto your feet. They may offer a payment deferment, putting the past due payments at the end of the loan.

So, overall, free loan modification can be a way to go and with the right sources and determination, it may be the right thing for you to do. But, again, if you are not sure how to really approach this topic, seek help.

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