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“Homeowners need to approach your lender and ask to be considered for the Obama loan modification program, if you are finding it hard to stay current on your monthly mortgage payments. It’s natural that your mortgage loan lender would prefer working with you rather than embark upon foreclosure proceedings which can be a costly procedure. But in order to contact your lender, it could be important for you to follow a stepwise process. Here is some crucial information pertaining to the same which could guide you in your endeavor.”

You need to approach your lender and ask to be considered for the federal loan modification plan, if you are finding it hard to stay current on your monthly mortgage payments. It’s natural that your mortgage loan lender would prefer working with you rather than embark upon foreclosure proceedings which can be a costly procedure. But in order to contact your lender, it could be important for you to follow a stepwise process. Here is some crucial information pertaining to the same which could guide you in your endeavor.

The 5 steps to negotiate a loan modification

1. Prior to approaching your lender, to be considered for a HAMP government mortgage loan modification plan or other alternative option, you need to assess the state of your existing financial affairs. Find out what exactly you earn every month and spend on your monthly bill payments. Also determine how you can cut the overall costs by seeking help from free nonprofit consumer credit services available online. Professionally qualified debt counselors employed by such firms would also assist you in carrying out negotiations with your mortgage loan lender.
2. In the next step, get in touch with your lender and explain your current financial situation. Your lender could pose a question regarding the manner in which you would pay off the mortgage loan dues. Inquire with your lender the way you could be helped out of the present circumstances.
3. Provide a viable answer to your lender’s query. By doing so, you could be opening the door for negotiating an initial proposal to modify mortgage loans.
4. If you are confident that your financial circumstances might not last that long, you could ask your lender to be considered either for a principal forbearance or postponement of monthly mortgage payments until such a time period during which your financial situation might improve.
5. If you presently have an adjustable rate mortgage and you are experiencing a difficulty in paying high monthly mortgage installments, you could tender a loan modification request to your lender. However, you could be required to provide a complete picture of your financial history along with the details of your monthly income and expenses. There are chances that you may be granted approval for the HAMP home loan modification plan or any other alternative, if you can demonstrate the ability to pay back a fixed rate mortgage loan. For ensuring this, you could take up some part time job as well and thus, convince your lender.

To get more useful information California HAMP loan modification elligibility and requirements from hamp loan modification experts, it is hereby recommended to utilize the professional services offered by reputed online service providers like USLoanz.