Las Vegas, NV – October 11, 2010 – (RealEstateRama) — Loan modification may be the last resort for people in danger of getting their Las Vegas homes foreclosed. Properly executing the loan modification process is critical in getting approval for it, and ultimately, to keeping your home.
Step 1: Talk with Housing Counselors
A housing counselor can represent you through the loan modification process. This person can explain to you your various options and let you know if you’re getting the best deal from a servicer. Also, they can make counteroffers for denied applications or unacceptable offers.
Step 2: Focus on Sustainability
Though loan modification typically gets you lowered interest rates, extended payback periods, and maybe even debt forgiveness, it’s not the only way to save Las Vegas homes mortgages. Other options include forbearance, which lets you skip payments or make partials because of temporary difficulties, and repayment plans, which lets you catch up through additional payments. No matter your choice, you should make sure that you can afford and sustain it.
Step 3: Keep Realistic Expectations
Keep in mind that the loan modification deal has to be reasonable to both you and the servicer. Expecting too much will only lead you to disappointment. The Home Affordable Modification Plan (HAMP) deems a mortgage as “fair and reasonable” if the monthly payment is 31% of the household monthly pre-tax income.
Step 4: Be Honest
Being honest with your housing counselor is key to getting an accurate and sustainable report on your income and budgeting. With this, you can find out where to trim your budget to help achieve modification or some other action to keep you in your home.
Step 5: Know your Finances
To prevent this distressing situation from happening again, it’s important to learn more about your finances. Ask your housing counselor to help keep you on track in budgeting your money and spending so that you can always take care of your mortgage payments in time. By making this a habit, you’ll be able to improve your financial future.
Consult our Las Vegas Realtors to help you get a reliable housing counselor to keep your finances in line
