How to negotiate with your lenderJust thinking how you would lose your house to foreclosure is something not easy to accept. Of course, you and your family value your house much because it serves as your comfort zone and your shelter. It is where you have shared lots of memories altogether and you know you are secured in that place.

However, sometimes there are circumstances that are beyond your control. As much as you are trying to balance everything well and be responsible in your duties, such as paying your monthly mortgage, there are times when you cannot do it.

If you are behind in your loan payments for months and your lender is already pressuring you, you do not have to blame yourself for the irresponsibility. Surely there are reasons why you were not able to do it in the last months. You could have lost your job, got ill so you could not earn, or had a financial problem in your family which resulted  in your being broke. Whatever the reason is, you still have the right to be given the chance and keep your house.

In order to stop foreclosure from taking your home away from you, you need a loan modification. This means that you have to convince your lender to restructure your loan payment plan.

However, this is not easy to do because lenders would usually find ways to reject your proposal. Therefore, you need to find ways of how you can negotiate with your lender.

Credence Law Group, a notable law firm in the U.S., gives some tips on how to effectively negotiate with lenders for a loan modification:

  • Provide a detailed hardship letter- a hardship letter is a document which explains your financial condition. Though this should not be filled with drama, you should make sure that your letter is detailed about what has occurred to you and your family that resulted to your hardship.
  • Provide a documentation of your expenses- this can serve as an evidence of what you have gone through. You should list your expenses down and attach pertinent documents that prove them to be authentic.
  • State how a loan modification can help you pay- you should also include a statement which shows how a loan modification can help you to have a better financial condition. If you can recover from your hardship, you should assure them that you can already pay back.
  • Get help from  a lawyer- a loan modification attorney can help you negotiate with your lender in legal terms. Of course, with a lawyer as your representative, your lender cannot just make any reason to reject your application. You will also have a legal assistance in the preparation of  your requirements. If you are not legally represented yet, Credence Law Group can provide you with one of their competent lawyers to help you in your case. 

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