Loan modifications have always been a possible solution for financial problems, but they have become more popular recently due to the passage of President Obama's Making Home Affordable Act. Along with this Act, the process has be simplified and it has become easier to be approved. It is worth the time taken the time to investigate this plan.
In this bailout economy there are programs available for almost every type of financial hardship you could think of. The "Economic Stimulus Package" for the banks, "Cash for Clunkers" for the auto makers, Making Home Affordable Plan" for home owners in trouble with their mortgage, and more. With all these programs available there are many ways to eliminate different types of debt, and get back on your feet, however when it comes to Federally backed loans such as Student Loans, there never seems to be a solution. Even Bankruptcy can't get rid of your student loans.
It is your decision to pay or not pay. Both have pros and cons. Some companies have lawyers who work with them, some don't. If you can find a company that offers legal consultation, choose it so you have the option of having a lawyer help you get your loan modified. Use extreme caution when you are employing a company to help you. Again, since there is such a demand for this service today, many companies have been formed who offer financial solutions. Not all these companies are legitimate and some are simply frauds out to take advantage of desperate people. Use a company that has a good reputation and a solid history. Check with the Better Business Bureau to find out their rating.
The first thing to do is meet with your counselor. Take along all application documents and be ready to discuss your finances. The adviser will go over your financial statements and help you figure out what the best course of action is for you. If it is decided that you need a loan modification, the counselor will work with you to write a loan modification hardship letter. This letter is written to your lender to outline the reasons why you should get a loan modification.
Some convincing reasons are a layoff, a natural disaster, death, divorce or illness. Write concisely. Your counselor will help you compose this important document and submit it to your lender with all necessary financial documents. It is very important that whatever company you are working with advocate for you during this confusing and trying process.
In this bailout economy there are programs available for almost every type of financial hardship you could think of. The "Economic Stimulus Package" for the banks, "Cash for Clunkers" for the auto makers, Making Home Affordable Plan" for home owners in trouble with their mortgage, and more. With all these programs available there are many ways to eliminate different types of debt, and get back on your feet, however when it comes to Federally backed loans such as Student Loans, there never seems to be a solution. Even Bankruptcy can't get rid of your student loans.
It is your decision to pay or not pay. Both have pros and cons. Some companies have lawyers who work with them, some don't. If you can find a company that offers legal consultation, choose it so you have the option of having a lawyer help you get your loan modified. Use extreme caution when you are employing a company to help you. Again, since there is such a demand for this service today, many companies have been formed who offer financial solutions. Not all these companies are legitimate and some are simply frauds out to take advantage of desperate people. Use a company that has a good reputation and a solid history. Check with the Better Business Bureau to find out their rating.
The first thing to do is meet with your counselor. Take along all application documents and be ready to discuss your finances. The adviser will go over your financial statements and help you figure out what the best course of action is for you. If it is decided that you need a loan modification, the counselor will work with you to write a loan modification hardship letter. This letter is written to your lender to outline the reasons why you should get a loan modification.
Some convincing reasons are a layoff, a natural disaster, death, divorce or illness. Write concisely. Your counselor will help you compose this important document and submit it to your lender with all necessary financial documents. It is very important that whatever company you are working with advocate for you during this confusing and trying process.
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