A loan or mortgage modification in Sacramento is a way to adjust the terms of one’s current loan, by either reducing the interest rate or extending the pay period or sometimes both. The overall goal is to lower monthly payments on your loan to prevent default and in the case of your mortgage, to keep your home. Mortgage modification in Sacramento is typically attempted by you the individual initially, but a California bankruptcy attorney may be able to help when other attempts didn’t work. There are several different approaches to modification including: In-house modifications and Home Affordability Modification Program (HAMP) modifications

How to: In House Modification

 
In-house mortgage modification, or dealing directly with your loan servicer to modify your existing mortgage is often the first recommend step in a successful mortgage modification. In the wake of the housing crisis of 2007, many mortgage companies have created dedicated departments to help individuals save their homes. The home preservation specialists will usually send you or be able to direct you to an application for this process. These packages will ask you to include paycheck stubs, a letter explaining your hardship, your budget, and any other supporting materials.

Once you have found out what your servicer requires and turned in the material, it’s time to follow up and be persistent. It’s a good idea to check in on the progress of your modification once or twice a week and ask if the file is complete, see if anything has changed, and ensure that documents don’t need to be resubmitted. The entire process can be a long and taxing one, but the reward is well worth the extra work.

How to: HAMP Modification

 
Much like an in-house modification, HAMP is designed to lower your mortgage payment to make home ownership more sustainable and affordable. The main difference between the two forms of mortgage modification is that HAMP is a government program. Because the government oversees the Homeowners Affordability Modification Program, it adheres to program guidelines that are usually less stringent than those of the loan servicers themselves.

The process to apply for HAMP is typically the same as the in-house modification: contact your lender, and supply the financial documents and they will check to see if you qualify for the HAMP. If not, they will look at other programs that may help.

One thing to keep in mind is that the mortgage companies are not your friends and they aren’t there to make it easy on you; they are there to make interest of your home loan, plain and simple. If you have attempted to modify your mortgage and been turned down as many people have experienced, you still have options. Many individuals have been able to modify their creditor payments by filing for Chapter 13 bankruptcy which takes into account all your assets and liabilities and allows you to structure a payment plan through the courts. By filing for bankruptcy you can IMMEDIATELY STOP FORECLOSURE proceedings and give yourself time to plan your repayment over the course of 3-5 years.