Guide to Do-it-Yourself Loan Modification Ohio
July 26, 2009 by admin
Filed under Home Mortgage Refinance
Do-it-Yourself Loan Modification Ohio receives more attention than any other loan modification packet in America. The fact that Ohio leads the way in home foreclosures comes as no surprise. The recent downturn in economy hit Ohio harder than any other state.
Ohio’s unemployment rate was estimated at 10.4% in May of 2009. Over 6,000 families suffer from the latest layoffs in automotive and food industries. Ohio’s economic status deeply reflects the current state of automaker’s bankruptcies and cutbacks in major food industries based in Ohio. As a result, one or both members of a family suffer from unemployment.
The pending doom of foreclosures looms wide across the state. Once a problem confined to traditionally struggling communities, it is fast becoming a national trend. Foreclosure filings could reach $100 billion dollars in subprime mortgages without immediate action from lenders and the federal government.
If anyone tells you that loan modification is easy, be wary. It takes a lot of good sense, discipline, and resolve to get the process going. The payoff of all your hard work will be a fixed loan at a competitive rate that is usually secured for up to 30 years. If you are unable to get the 30-year fixed rate, try a five-year fixed rate. This will give you time to get your mortgage payments back in good standing and refinance during a time when the economy is in better standing.
The first thing that you need to do is stay in contact with your lender. It always amazes me that borrowers default on their loan without even having the courage to pick up the phone and talk to their lender before heading into foreclosure. It’s not up to the lender to help send you to the loss mitigation department and negotiate a deal even if it’s in their best interest.
Show some gumption and handle your problem before it spins out of control. The chances of receiving an expedient loan modification in Ohio increases two-fold if you’re proactive in your efforts to communicate before you go into default.
You’ll need to make your way to the loss mitigation office. Now isn’t the time to tell them of your overly optimistic plans to get out of debt. Nor is it the time to tell them you are a lost cause. Answer all the questions honestly and thoroughly. With success, your loan modification Ohio packet should be on its way.
Once you receive the packet, you will have to calculate your debt to income ratio. It’s not much different from applying for your original loan. Beware of a catch-22. If you show that you are financially incapable of making the current payment, you may prove to be too much in the red to modify your loan.
It’s critical that you document the entire process along the way. Set up a spreadsheet or call log to keep track of your efforts in completing your loan modification. Make sure you get extension numbers and names along the way. Take notes of phone conversations. This will also prove that you tried everything in good faith by keeping immaculate records.
If you are serious about getting a loan modification Ohio, try a DIY loan modification kit. This will give you a step-by-step guide to preparing your loan modification. One wrong step and you’ll be swept under the carpet of underpaid loan mitigation officers.
Related posts:
No tags for this post.