Are you ready to hear some good news about a homeowner stopping foreclosure and saving the family home? The news today is full of doom & gloom, banks failing, home values dropping and foreclosures are mounting-but here is a success story about a family who got a loan modification from their lender and saved their home from foreclosure.
Here is their story, maybe it will help you and your situation. Joe Z. and his family bought their home about two years ago. Joe had a good job and his wife worked, so they were happy to be able to give their family a chance at the American dream-home ownership. They had never owned a home before and had no experience with the purchase process or with home loans. Based on recommendations from their agent and loan officer, they bought a home with 5% down using a first and a second loan. Long story short, they were stuck in a toxic, negative amortization loan with no way to refinance, they owed too much on their home.
When Joe’s wife lost her job, they got behind on the monthly payments. Within 2 months, they were facing the real possibility of losing their home to foreclosure. After reading online about loan modifications, Joe contacted their lender about the possibility of getting their current loan modified into a lower payment program. The lender explained what they would need to see, and Joe started to work. He did alot of research on line, and learned as much as he could about the whole loan modification process. He and the family sat down, went thru all of their bills, and put together a new budget that included a lower home loan payment that they all agreed was affordable.
Joe carefully completed all the required forms, composed a good letter explaining to his lender what happened to cause them to fall behind on payments. He also assured the bank that if given the new lower payment, he would not be late again and would be able to continue making the house payments. He carefully reviewed the loan modification package to make sure he was presenting his case to the bank as completely, and convincingly as possible.
Joe was on a mission to save his home. He was committed to doing everything he could to keep his family in their house, in their school and neighborhood. Well, after about 6 weeks of speaking with a representative from his bank’s loss mitigation department, and negotiating back and forth, Joe was sent his new loan documents. The new loan featured a fixed rate of 5.25%, the missed payments were added into the loan balance, and the late fees were waived. The second loan was reduced by $42,000 and he was given an extension to the term to help make the payment affordable. Success! Joe and his family were now able to stay in their home and get a fresh start. A huge burden had been lifted off his shoulders.
Make no mistake, this process was not easy for Joe and his family. But with knowlege and persistence, there was a happy ending. It was worth the hours spent and the effort made by Joe to complete the loan modification. How much time and effort would you be willing to put forth to save your home and credit? Thousands of homeowners are successfully getting their loan modification applications approved-you can too! With some preparation and knowledge, you can learn how to work with your lender to find a solution to avoid foreclosure.
A very good source of information about how a Loan Modification works and what it takes to get your loan modification application approved is The Complete Loan Modification Guide handbook. This EBook Guide will take you step by step thru the loan modification process. You will learn the 7 Steps to a Successful Loan Modification. This is a low cost, easy to read and easy to follow handbook that gives you the necessary forms, along with detailed instructions on how to complete them properly. You get help with writing a compelling Hardship Letter, and examples for your review. This is a must read before you contact your lender about a loan modification. So get informed and get going!
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