Applying and getting approved for a loan is hard in itself, but having your home foreclosed is much worse. One in every 500 households has their home undergoing foreclosure. The number of unpaid loans increases each day, which is not good for both the lender and the borrower. The borrower has to give back the keys of his house to the lending company or the bank that will foreclose it. The people who failed to pay their loans will have a difficult time to apply for a new loan.
Because of their bad credit, banks will not want to approve them for a mortgage. The bank is also affected when there are default mortgages because they would need to liquidate their transactions, and during this time, foreclosed properties do not sell much because people are not that interested to invest in these homes. Because of this, the government has thought of solutions to address this problem: Loan modification became legal on February 18, 2009.
If you think that you would be unable to pay your loan because of the lofty rates and high interest, you must tell the bank about your situation and formulate a plan to be able to solve your financial problem. If you encounter a drastic change in your monthly income such as a divorce, demise of a family member who is involved in the payment, or dismissal from work, you may qualify for a loan modification program. However, if the reason for your default is because of your poor money management, you would not be approved because the lenders are not assured that you would not fail if given another chance.
You must bring evidence that you indeed have a dire financial situation such as your pay check and bills. If you have presented credible proof that your income has decreased significantly, they will set a schedule so that you could meet with the bank’s representatives. You will be given lower rates as stated in the agreement. The length of the mortgage will be longer for you to be able to pay the lower monthly amount. Before signing anything, read the contract properly, since you would not want to experience this all over again. The bank encourages borrowers with financial problems to undergo a loan modification process and free counselling is provided for those who are applying.
The loan modification law has improved the loan situation in Wisconsin. Many people made an effort to keep their property and cooperated with their creditors. Instead of defaulting, apply for a loan modification instead. This is a good a way to save your home from foreclosure and get better terms on your loan.
11163 Stonewood Drive
10700 W. Venture Drive, Unit C
5325 Wall Street
5325 Wall Street
LANDMARK MORTGAGE LENDING
PO BOX 8153
GREEN BAY, WI
Wisconsin Reverse Mortgage
14260 West Greenfield Avenue
AT HOME MORTGAGE
125 James Street
AT HOME MORTGAGE, LLC — USDA FINANCING
2315 U.S. Hwy 14 East, Ste. 5
Richland Center, WI
300 Patriot drive
Little Chute, WI
Legal Aid Society of Milwaukee Inc.
Advocacy for Low Income Neighborhood Equity Program
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