One tool a person in foreclosure can seek to stop the foreclosure and to save their home is a Loan Modification.
A Loan Modification is where the Lender agrees to change the terms of a mortgage permanently. These changes allow the monthly payment to be reduced to an amount the person can afford. It also allows the loan to be reinstated.
A person in foreclosure can contact their lender and ask if they can qualify for a Loan Modification. The lender will send them a financial statement to complete and also ask them to submit a letter explaining why they fell behind on their mortgage payments.
For those who do not have a background in finance the Financial Statement can be challenging. Just looking at it will get some people to say that there is no way they can complete it. They give up right then and there. They feel all is lost. https://slickcashloan.com/
On the Financial Statement the person has to indicate their monthly income. If they took out the mortgage with another person, that person also has to indicate their monthly income. The monthly income is their gross monthly income from all sources – their job, Unemployment Compensation, Child Support, Alimony, Disability Income, Rental and any Other Sources.
This is Gross Income – the income they receive before taxes and all other deductions. It is monthly income. If the person is paid weekly, they should multiply their weekly gross income by 52 and then divide by 12. If they are paid every 2 weeks, they should multiply the gross by 26 and divide by 12. If they are paid twice a month, that is the easiest. Multiply the gross by 2.
Next the person has to subtract the Federal and State tax and FICA they pay from the Gross. Also if the person has a 401k deduction they have to subtract that too.
They then calculate their monthly expenses. The first is what they pay on their mortgages and in rent. Then there is their monthly payment on their auto loan and any credit card and installment loans they have. Next is what they pay monthly for car insurance and any other auto expenses (gas, repairs, tolls, etc.)
If they have to pay for insurance, they indicate what they pay monthly. If they pay for medical care over and above what their insurance covers, they list the monthly total. They then show the monthly cost for child care, child support and alimony.
Hold it – We are not done yet.
They then list what they spend for food and entertainment monthly. Next they show what they pay for water, sewer, utilities and phone. Last, they show any other expenses.