Over the last few years working as Real Estate Consultants, unfortunately we have heard a number of stories about people who have lost their homes that did not realize they had any other options.

Banks understand that sometimes a person's problems are not permanent and can turn around quickly. You and the banks have all the incentive to try to avoid the foreclosure process at all costs.

With a foreclosure on your record you will not be able to buy a property with conventional loan financing for five years. So if you or someone you know is potentially facing a foreclosure because of falling behind in mortgage payments don't just sit back and let it happen. Reach out to your lender and explain your situation right away and ask for their help.

The 1st thing a lender or bank will want to know is exactly where you stand financially at the moment and what you can afford. Let the mortgage company or bank know your exact situation. Speak to them about your desire to remain in the home and how you can work out a payment plan that will be mutually beneficial.

The bank is going to want to know what has caused you to become financially strapped. You can plan on being asked to put this in writing. This is known as a "hardship letter". In the letter you will be asked to explain the circumstances behind your missed payments and an understanding of why you believe you will be able to continue to make payments under the modified terms.

You will be asked to provide documentation to prove your case. Documents that the bank will ask for most likely will include pay stubs, bank and brokerage accounts, W-2's, income tax returns, and a list of your current expenses including things like insurance, utilities, taxes, food and other typical expenses.

The bank has the option to try to keep you in the home in a number of ways including an extension of the length of the mortgage, the interest rate, or a reduction in principal. It potentially could be some combination of all three. Remember the goal is to keep you in the home and the bank is working with you!

One other option that can help those home owners who are under water where the value of their home is less than the mortgage balance is the new bill put into law in October 2008 known as the Home Owner Recovery Act of 2008.(read a complete explanation here) This new bill will allow a qualified home owner with the lenders approval, to refinance their home at 90% of the homes newly appraised value. There is one caveat, however, to this new program. The home owner will be required to share in the future appreciation of the property with the government.  Many more programs have been implemented over the past year.  REMEMBER - CALL YOUR LENDER AND FIND OUT WHAT PROGRAM THEY HAVE FOR YOU AND TRY!

There may be trouble for loan modifications in the future.  Many borrowers who obtain loan modifications, in fact, soon find themselves in trouble again.  According to a government survey, 53 percent of the borrowers who had changes to their loans in first quarter of 2008 began missing payments within six months.  http://www.nytimes.com/2008/12/21/realestate/21mort.html?_r=2&ref=realestate

The bottom line is that loan modifications are still available to those people that truly qualify.  The requirements and qualifications continue to change, especially since the above statitistics were released.  The best thing you can do is to make a good faith effort to modify your loan. 

IF YOU WANT HELP BUT DON'T WANT TO DO IT YOURSELF, WE ARE HERE TO HELP YOU.  BY STATE LAW WE CAN NOT CHARGE YOU A FEE UP FRONT. 

OUR FEE IS SIMPLE.  IF WE CAN NEGOTIATE A LOAN MODIFICATION FOR YOU THAT YOU ACCEPT THAN FOR OUR PAYMENT WE ASK THAT YOU PAY US THE DIFFERENCE BETWEEN YOUR OLD PAYMENT AND THE NEW MODIFIED PAYMENT.  WE ALSO ASK THAT YOU LET YOUR FAMILY, FRIENDS, COWORKERS AND ANYONE ELSE THAT COULD USE OUR SERVICE KNOW ABOUT US.

Above all else remember there is help available!

Here is a link to recent CNBC report:

http://www.youtube.com/watch?v=puEmwv7AuBM&eurl=http://bporeoblog.com/loan-modification-scams/