If you're seeking to get a loan modification, one of the steps you'll have to take involves reviewing your debt obligations. Many borrowers get so caught up in what they owe on debt that it interferes with the ability to make mortgage payments. Some experience changes in income or job loss while others try to work out a budget to stick to that will help them make ongoing mortgage payments.
While making mortgage payments each month is a recommended priority, it may help to seek a mortgage modification so that payments become more affordable. In applying for a modification you'll have to be able to show your lender that you can make payments under the revised terms of the loan. This means you'll have to work on getting your debt under control.
A modification can be the first step along with the following suggestions:
- Make sure you keep up all payments.
- Make sure you can afford your home.
- What are your motivations for prioritizing your payments and what will keep you making them?
Take time to review debt and make plans to pay if off with a plan and stick to it. If you have credit card debt , look at methods to help you pay them off and keep debt amounts under control. You may want to pay the card with the lowest interest rate. Debt consolidation or debt counseling may be another option to help you deal with outstanding debt.
Whether or not you work with a loan modification attorney to get your loan modified, you will need to have an understanding of your debt and how it will be paid. Keeping your debt under control along with manageable mortgage payments may reduce chances of foreclosure.