In the past, I’ve talked about the difference between a foreclosure and a short sale. But you don’t have to lose your real estate in Lake Havasu or be forced to put it on the Havasu real estate market right away if you find yourself struggling to make your monthly payments. Some mortgage companies allow homeowners to apply for mortgage forbearance. This gives you a little break from payments so that you can get back on your feet due to a temporary financial issue. Before considering mortgage forbearance, many lenders offer a loan modification option for qualified Havasu homeowners. What is this? How do I apply? Where can I get answers for my questions?
What is It?
A loan modification is exactly what it says: a modification of the loan on your real estate in Lake Havasu. This could be an extension of terms, lowering your interest rate or even skipping a payment or two for a temporary reprieve. The lender adds any missed payments to the end of the current loan. Each situation is different. So, the lender tries to work with the borrower to find the best resolution possible. They don’t want to take back your property any more than you want to give it up. If you’re a borrower in good standing, a lender is more likely to try to work with you to resolve this temporary setback.
How Do I Apply?
First, start the process as soon as you realize you have an issue with payment. Were you laid off from your job? Did you or your spouse suffer a serious injury? Was there a death in the family? Whatever the reason for your current financial hardship, you need to talk to your lender right away. You don’t want to wait until you’re at risk of losing your real estate in Lake Havasu before you act. Start by filling out a Request for Mortgage Assistance (RMA) form. Then, bring this form as well as two recent bank statements, last month’s paycheck stubs, a copy of your monthly mortgage statement, and any information about additional mortgages attached to your property (aka, a second mortgage) to your lender. In addition, bring proof of any extra income you receive each month (child support, bonuses, overtime, etc.). If you receive social security, disability or pension payments, banks want to see those, too. Finally, the lender will want to see your last two federal tax returns and a utility bill with your name and the property address on it. It would help you to draft a letter describing your current financial hardship, the reason you find yourself in this situation, and how you plan on resolving it along with a timeline of how long you expect it to last.
Assistance for Troubled Havasu Homeowners
Have questions? That’s understandable. Before you rush to place your home on the Havasu real estate market, take a moment to do a little research. Websites like HUD.gov act as a great resource for information about loan modification. Prefer to talk to a person? Visit HUD’s Foreclosure Avoidance Counseling page to find a counselor near you. Making Home Affordable also offers tons of tips and answers to frequently asked questions. And, of course, you can always talk to your lender.
The whole point of loan modification is so that you aren’t forced to make a hasty decision about your real estate in Lake Havasu. Instead, it allows you time to breathe. Then, when you’re in a better position down the road, you’ll be ready to put your home on the Havasu real estate market and sell it on your terms.
Alexis Steel – 928-303-2199
Keller Williams Arizona Living Realty
Search homes at: www.TheHavasuHome.com