Many people are in trouble with mortgages and now need a loan modification.  But what if you don’t qualify for a loan modification? There is still hope!

One thing to keep in mind is lenders do not want to deal with a foreclosure.  There are already too many foreclosed properties which mean no profits are coming in and they are left to sell off property at a discounted price. So if you cannot qualify for a loan modification you can still try negotiating with your lender to work out a payment plan.

First, can you qualify for a loan modification?  You must make the first step and notify your lender of your hardships and sit down to see if you qualify. The lender probably knows you’re having difficulties paying if you’ve already missed a few payments but you need to show a commitment to saving your home and make the call.

The lender will require a financial history from you that details your income, assets and expenses.  Lay everything on the table and show where your money is going.  If you’ve been laid off from work explain that you’re committed to saving your home just experiencing a rough patch right now. 

If the lender is difficult to dealing with you get some help from a real estate agent to document neighborhood demographics.  Show the lender what they have at stake and how your repayment plan makes more sense than them foreclosing.  Now you’re going to have to do your part and put some thought and research into this, especially when the lender doesn’t want to develop a repayment plan. 

Keep in mind, the new Obama Housing Plan isn’t mandatory for banks to put into practice. The government does offer incentives and it makes sense for any lender to take part in loan modifications however they do not have to implement this plan.

You must do you part to save your home and develop a concise plan that shows you need the help and you’re willing to work at repayment.