There is help for homeowners with financial hardship who are struggling to meet your monthly mortgage payment and facing foreclosure. Vivix Credit Solutions recommends that you seek loan modification from your lender. If granted, the loan modification, which can be temporary or permanent, can change the interest rate of your mortgage and the monthly payment and terms of your loan. In some cases, Vivix Credit Solutions says the past due amount of the loan can be rolled into a new loan and the old balance paid off.

Even if you are current on your mortgage payment, you can apply for a loan modification.  Vivix Credit Solutions points out that you can apply for a modification if you suffer a loss of income or there is a family medical emergency that will impact your ability to keep current with your payments

The Federal government sponsors several home loan modification programs. Individual banks provide some of their own options, but most work through the government sponsored programs, Vivix Credit Solutions explains. The two government programs launched in 2009 are called the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP). HARP is actually a refinance option rather than a modification.

Qualification for a loan modification requires:

    You must occupy your property; it can’t be a rental
    Your mortgage must have originated before January 1, 2009
    For a single family home, the unpaid balance on your mortgage must be no more than $729,750
    You must be experiencing financial hardship or show that you are about to so that you are or will soon be unable to make your mortgage payment
    Your mortgage payment must be more than 31 percent of our pre-tax monthly income.

Vivix Credit Solutions advises that you have certain documents ready before you talk to your lender about a loan modification. Contact a lawyer to see what specific laws apply in your state. To proceed, you will need to show:

    Pay stubs or some other documentation of your monthly gross income before taxes
    Your income tax return for the past two years
    Property tax and insurance information
    Information about your assets and the monthly payments on your credit cards and any other loans, such as a student loan or car payment
    A hardship letter, which your attorney can help draft, explaining the circumstances that are affecting your ability to meet your financial obligation.

Expect to wait about two months

Vivix Credit Solutions says you should expect to wait about 60 days for an answer about your loan modification.  Since the banks are dealing with many requests, periodically call in and find out the status. After each call, it’s a good idea to log the information, including who you talked to and what you discussed.  If you need to send in additional document, make notes about what you sent and the date. You don’t want your loan modification to get held up because you failed to provide a necessary piece of information, Vivix Credit Solutions cautions.