I hear a lot of people say “I’d really like to save my house” but it’s just not going to happen. These are good folk who have invested their lives in their homes. They didn’t buy it as a speculation to make money, they bought it because it was their dream. This is the home they wanted and never thought they could have. This is the home they thought they would raise their family in. This is the house they thought they would grow old together in. If it hadn’t been for the recession, most of them never planned to leave. What happened?
There are a lot of good folk out there that could care less if they owe more for the home than it’s currently worth. Most people don’t buy a home for its investment value, they bought it because they wanted it. The recession may have stunted their plans. They may have lost an income stream or not gotten promotions they were promised. Had everything remained the same, they could and would still be making the payments on time.
If you are in this situation, you already qualify for a home loan modification.
The key here was something changed that affected your ability to make the payments. Your first step is to write the story. Start with this is where you were financially when you bought the home. Explain why you assumed you would be able to meet the payment schedule. Then explain what changed to make the home unaffordable. Did your spouse get laid off? Did you know the payments were going to go up? Did your hours get cut back at work? Use anything you can think of and verify it with paystubs, W-2′s, P&L statements if you are self-employed, etc. What you have just done is to write a hardship letter.
You are well on your way to saving your home.
My advice would be to get someone familiar with home loans and specifically home loan modifications to help you. Bankers do have a type of code-speak all their own. It is paramount that you or the person you choose to represent you knows the lingo and the rules. You are trying to save an asset that is valued in the hundreds of thousands of dollars. If it was in cash, I’m sure you would trust it to an uneducated person to invest for you, why would you trust your home to someone who doesn’t know what they are doing (you)?
Unfortunately good loan modification specialist don’t work free. You probably wouldn’t want to use someone who works for free anyway would you? What’s in it for them if you get approved? Nothing. So why would they work hard for you?
On the other hand, many people are in so deep they can’t afford a specialist. If you are in this category, at least invest in a course to teach you the basics. You want to arm yourself as well as possible if you are going into battle.