Missed mortgage paymentWith the current economy and with what’s happening with the global financial crisis, it is important for us to be able to secure our basic needs. One of those basic needs is shelter; our home is needed for the protection of our family. We can always cut down on the budget for food and try to be creative when it comes to cooking budget friendly menus but the mortgage of our house is another story. There might even come a time that you may have missed a mortgage payment for your house which is quite scary if you don’t want to be homeless.  If you are in such situation or about to be in that situation, then read on the tips below as it will help you overcome missed mortgage payments:

Get to Know Loan Modification

A loan modification is a payment scheme that helps those who are falling behind the payment of their mortgage. This is a way for the banks to avoid foreclosures and bankruptcy because in as much as you don’t want your property foreclosed or for you not to file bankruptcy, your banks and lenders don’t want to drive you in that direction as well because it will hurt them financially too. This is the reason why such payment schemes are made. It basically reworks your home loan in such a way that you can afford monthly payments. Loan modification may not have an adverse effect on your credit however if you missed out on mortgage loan payments, it will definitely leave a bad credit record. Finding ways to stop foreclosure is a must do so that you can maintain a good credit record. Get to know your loan modification plans and see if it fits your needs.

Be prepared with a budget

One of the things that your lender will check when you applied for loan modification is your budget. This is how the lender will determine if you are worthy for approval on loan modification. Many are being denied for loan modification because the budget does not justify why you need to apply for one. Your goal here is to make your lenders understand your financial situation as you are their best resource for finding out why all of this is happening.

Be Honest

You can never get a good result when lying. This will be the biggest mistake you will ever make because lenders don’t want to deal with liars.  Presenting your case factually is a must because banks and lenders are not stupid to not realize that you are lying. Remember they will verify everything in your application and if proven wrong, you are blowing away your chances to be able to keep your home. Submit a complete and honest application and once they see how sincere you are that you need help, then they will be more than willing to assist you all the way.

Be open and discuss matters with your lender

If you can’t make a payment, be open about it and inform your lender right away. That way they can help you to find ways to be able to make payments. Running away form obligations and hiding from them or not responding to their letters is not a good idea. Credit is based on trust and that is one thing that you don’t want to lose with your lender.

Get a stable job

It is easier for you to qualify for home loan modification if you have a stable and steady income. The lender should also feel that you are able to afford lower monthly payments. When you apply for a voluntary loan modification, the principal is not reduced; making it harder to be out of debt.  So finding ways to qualify for home loan modifications is a priority as it will help you gain financial freedom.

Consider a short sale

This is one of the other options you have if you can’t even keep with a lower payment after a loan modification. Here, you are required to sell a dwelling for an amount that is less than the loan balance in which the lender will agree to accept a reduced pay off and let go of the rest.

JCC Alliance Network has a brand new program called HEAVEN, (Home Equity Acceleration Velociity enrichment) to help people that are “upside down” and late on their mortgage.

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