A Hardship Loan Modification Can Help You Save Your Home.

It wasn't long before I was behind on my mortgage by 3 months after being laid off. Before this happened in my life I'd never heard of a hardship loan modification - it was one of those things that happens to someone else like an accident or heart attack. I believed niaively that I would get a job within 3 months well things didn't work out the way I wanted!I wasn't ignoring the problem, I didn't recognize that I had a problem - after all it wasn't yet 3 months and I had never missed a payment in 11 years. One thing I learned the hard way is that you can't look after your wife and kids properly if you don't keep the roof over your head- I had focused on finding work first!Just before the 3rd mortgage payment was due to go out of my account which now had no savings I realized that I had to talk to the bank immediately.

I felt stupid because I recognized that I had probably let things go on too long and that if I didn't get help there was a possibility that we would lose the house. My first action after I realized the seriousness of the situation was to ask my folks for a loan even though things were also tough for them. I went to a specialist foreclosure lawyer and she didn't want to help because I had no money and she wanted paid up front - She basically suggested taking it on the chin and looking for a place to rent!

Unless you've been through this you have no idea of the pressure- you can't think straight - you can't seem to make the right decisions, you have your wife and children to feed as well. When you realize that you need help the hard thing to find out is where to get the right help. I felt so hassled I prayed really hard. Don't get me wrong I'm not very religious but this did help me see things a bit clearer. On the following Monday I went to the reference section of my local library. The good thing about any library is that the internet and newspapers are free - so you can get good information.

I found out from the web that a hardship loan modification is designed to help home owners avoid foreclosure. I found out that lenders and banks are often willing to discuss arrangement with you to stay in your home and avoid foreclosure as it also saves them from greater losses. I was surprised to learn that some loan insurance companies were refusing to pay banks that had foreclosed on customers without giving them a chance to come to an arrangement. This was great news - such a relief!

It was a surprise for me to learn that a lender loses 70% of the value of a property once they foreclose. Having this background information gave me greater confidence to go the next step in saving our home.

I'm probably a bit like you - I'm not very technical, I'm not very good at understanding all the financial information needed and organizing it properly and I still needed expert help to make sure this whole process was going to work. As I mentioned before I couldn't afford an attorney but I did find a company when I was researching at my local library that would help!

By: Jack DeMontfort

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