If you’re an Orange County home owner who is considering foreclosure, you can have hope because, there is more than one option available that will help you to avoid the specter of foreclosure, damaging your credit and being unable to buy another home for at least seven years. In part one of this five part series we will explore five steps that you can follow to avoid going through the painful Orange County foreclosure process and learn real solutions for getting your financial life back on track.
What Exactly Is Loan Modification?
A loan modification is “retooling” or modifying your home’s interest rate and loan duration until your loan becomes affordable enough for you to make your payments every month. A loan modification in Orange County is very common in 2012 and many Orange County home owners typically start the loan modification process too late and their home ends up going into default.
If a home owner is current with their payments but still can’t afford to make their payments every month without borrowing from other sources and getting deeper into debt, they should contact their bank immediately to start the loan modification process because, banks don’t want their customer’s homes to go into foreclosure since they will lose money on the home that can’t be recovered.
Get Help for the Process
To start the loan modification process and insure success, you should contact a lawyer who specializes in loan modification or visit your local HUD office for help with your Orange County loan modification. Some companies will charge a fee that can be up to $2,500 dollars while others will not, the key to success in finding the right person to help you is contacting a professional who has verifiable loan modification experience and happy clients to show for it. The government has implemented a great program called HARP / Making Home Affordable Program to help homeowners refinance their mortgage into a more manageable payment.
Be Upfront and Honest
The most important step to successful loan modification is to be upfront and honest with your lender and supply all required documentation that they require like: income tax returns, savings account information and other records. Lack of one record can delay the approval process and it’s always best to have all of the paperwork that you
need up front before moving the loan modification process forward.