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This is a quick overview of some of the things you need to know if you want to work out a mortgage loan modification with your lender. If you are able to come to an agreement, you may be able to use this to keep your home and stop it from going through foreclosure.

There is one thing you should keep in mind before you start negotiating with your lender for a loan modification. The people you will be talking to have a job to do, and that job is to get you to agree to pay as much as possible so that the bank makes the best deal for itself. Nothing you say to the loss mitigation employee is confidential. It can and will be used against you, so watch what you say.

Before you even start negotiating, you need to gather up all of your financial records. That includes proof of income for at least the past month or two, all of your paid and unpaid bills and two or three years of income tax returns. You need to be able to document both your income and expenses thoroughly.

Everything the mortgage company mails you needs to be kept in a file. That includes regular statements as well as anything related to the negotiations you are trying to do. Keep even the envelopes. You may need to prove the date something was mailed. Also keep copies of anything you send the bank, and send it certified mail. Record all of your phone calls. Sometimes the lender will try to change the agreement on you, so you need to have proof of everything that has been done.

It can be tempting to spend the money that would normally go toward your house payment on other things, since you can’t afford the house payment anyhow. This is a really bad idea. If the lender does agree to modify the terms of your loan, they will want an upfront payment to show that you are serious. If you don’t have anything to offer them, they are going to want to know what you did with the money.

Be careful what you agree to. Sometimes the mortgage loan modification offered by the lender is a bad deal. In fact, a lot of times the offer that they will give you involves you paying your normal mortgage payment plus a certain amount for a number of months until you get caught up. Chances are, you won’t be able to pay an even larger payment if you weren’t able to keep up with the regular payment to begin with.

For assistance with loan modification contact a qualified loan modification attorney that will look out for you and your family’s best interest such as Janian and Associates.

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