Mortgage Forum

Mike

Do I have to be late on payments to get a loan modification? We have depleted our savings and I know that I will be late next month, so I want to get started on the process now. Also, how do I get a loan modification package? I have my mortgage with Litton. Thanks!

Zino

Definitely contact your lender, in this case Litton and explain your situation with them. Explain to them your financial situation isn't good and without a loan modification now you will not be able to keep up with your payments, and to avoid paperwork being late you would like to start the modification process now.

If it's inevitable waiting until you can't repay is just a formality. No you don't need to wait to submit a loan modification, prepare a hardship letter and get copies of all your documentation to support your case.

All the best, and i hope you are successful. You are doing the right thing by reacting to the the problem early instead of pretending it doesn't exist.

gtull1

Mike, no you don't have to be late on your mortgage payments first. Read the thread on how to negotiate with your mortgage lender to erase bad credit history. Mortgage companies, just like all creditors and any business for that matter, are just trying to make a profit by making sure that you live up to your end of the agreement. When you can't do what you promised to do (pay your mortgage on time), you just need to be honest with them and work on a solution that is best for both of you.

I would highly advise that you contact your home loan lender asap. Instead of waiting until you are in default on your mortgage, go ahead and be proactive now. You may also find that the creditor will be more willing to work with you since you are being honest about your difficulties in repaying the loan, and you are explaining your financial hardships before any notes are missed.

By the way, just because you are late on paying your home loan, that doesn't make you a "bad guy". A lot of us, with the best of intentions, have financial troubles that are beyond our control. The best we can do in this situation is to deal with the problems "head on".

Good luck with your home loan lender! I'm pretty sure that they will be grateful that you are contacting them first, before they have to send their mortgage collections team looking for you.