Working With Multiple Lenders In A Mortgage Modification
Nowadays it is not uncommon for a homeowner to have more than one mortgage on the same home. Things can become a little complicated if you plan on modifying multiple mortgages. If your second mortgage is still affordable, then you should continue to make those payments on time and concentrate your efforts on your first mortgage. Your main goal is to have combined mortgage payments that you can afford to pay each month.
If you need to perform a loan modification on more than one mortgage, it’s important to modify both loans at the same time. I have seen many homeowners try to modify their mortgage loans one after the other. This does not work out well because during a foreclosure, time is definitely not on your side. Often times a homeowner will spend 2-3 months to complete their first mortgage modification, only to find out their second one cannot be approved. This will change everything and force the homeowner to devise a new course of action, with not very much time left to implement it. Simultaneously modifying both your mortgages also carries a lot of benefits to the homeowner.
Strategies For Modifying First & Second Mortgage At The Same Time
Another strategy that you can use when negotiating with multiple lenders is to sort of play one lender against the other. You will find that sometimes one lender may agree to a loan modification with little effort, but the other lender may give you a hard time. Now is your chance to inform both lenders that you are negotiating your loan modification with another bank also. Explain to them that if the other lender does not agree to a loan modification, you will have no choice but to allow your home to be foreclosed on. The lender that wants to do a loan modification on your home will often times put pressure on the other lender to approve your loan modification. A bank is a business and they do not want to lose money. If they will lose less money from modifying your mortgage than if they foreclosed on your home, that’s exactly what they will do! This Loan Modification kit will teach you how to tailor your loan modification package to send the right message to your lender.
